Parex Resources (PXT-T) April 15, '16 is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Scotia Capital Inc. and FirstEnergy Capital Corp. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 13 million common shares of Parex (the "Common Shares") at a price of $9.15 per Common Share for gross proceeds of $118,950,000 (the "Offering"). Parex has also granted the underwriters an over-allotment option, exercisable in whole or in part, for a period commencing 30 days following closing of the Offering, to purchase an additional 1.95 million Common Shares on the same terms as the Offering, to cover over-allotments, if any, and for market stabilization purposes. The maximum gross proceeds raised under the Offering will be $136,792,500 should the over-allotment option be exercised in full.
The net proceeds from this Offering will initially be used to pay down bank indebtedness, increase net working capital and subsequently is expected to be used to fund growth opportunities. Examples of growth opportunities include but are not limited to: (1) follow-up on successful exploration results on the Company's current eleven well exploration program as previously disclosed, (2) commencing the exploration program on Parex' blocks in the Middle Magdalena Basin and (3) opportunistic acquisitions of additional acreage in Colombia.
This Offering is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The Common Shares will be offered in each of the provinces of Canada by way of short form prospectus. Closing is anticipated to occur on or about May 5, 2015. Following the closing of the Offering Parex will have approximately 148 million Common Shares outstanding.
Parex Resources Inc.
Michael Kruchten
Vice President, Investor Relations
(403) 517-1733
investor.relations@parexresources.com |
