TSX, NYSE: BXE – CALGARY, Oct. 4, 2016 /CNW/ – Bellatrix Exploration Ltd. (“Bellatrix” or the “Company”) (TSX, NYSE: BXE) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. (“Canaccord”), pursuant to which Canaccord has agreed to purchase on a bought deal basis 8,474,576 common shares of Bellatrix, which will be issued on a private placement “flow-through” basis in respect of Canadian Development Expenses (“CDE”) at a price of $1.18 per share resulting in gross proceeds of $10 million (the “Private Placement”). The Private Placement is expected to close on or about October 27, 2016.
Proceeds from the Private Placement will be used to partially finance the Company’s drilling and completion expenditures during the remainder of 2016. Bellatrix shall, pursuant to the provisions in the Income Tax Act (Canada), incur eligible CDE (the “Qualifying Expenditures”), after the closing date and prior to December 31, 2016 in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of the subject flow-through common shares. Bellatrix shall renounce the Qualifying Expenditures so incurred to the purchasers of the flow-through common shares on or prior to December 31, 2016.
The Private Placement is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The common shares issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of completion of the Private Placement, in accordance with applicable securities legislation.
Bellatrix Exploration Ltd. is a Western Canadian based growth oriented oil and gas company engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. Common shares of Bellatrix trade on the Toronto Stock Exchange and on the New York Stock Exchange under the symbol BXE.
All amounts in this press release are in Canadian dollars unless otherwise identified.
The common shares have not and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in the United States.