CALGARY, ALBERTA–(Marketwired – April 11, 2017) – PetroShale Inc. (“PetroShale” or the “Company“) (TSX VENTURE:PSH)(OTCQX:PSHIF) is pleased to announce that it has closed the maximum amount of its previously announced public offering (the “Offering“) of voting common shares (“Common Shares“). Pursuant to the Offering, the Company issued an aggregate of 122,265,000 Common Shares at a price of $0.90 per Common Share for gross proceeds of $110,038,500, which included the full exercise of the over-allotment option granted in connection with the Offering to Haywood Securities Inc., the sole agent of the Offering.
The net proceeds from the Offering will be used for debt repayment, the funding of the Company’s increased capital program and for general corporate purposes.
Mr. M. Bruce Chernoff, the Company’s largest shareholder, Executive Chairman, Chief Executive Officer and Director acquired, indirectly through an entity substantially owned by him, an aggregate of 44,444,500 Common Shares pursuant to the Offering for a total of $40.0 million. The participation by Mr. Chernoff in the Offering is considered to be a “related party transaction” (as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“)) and is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 as a result of available exemptions thereunder, which are described in greater detail in the Company’s final short form prospectus in respect of the Offering.
PetroShale is a growth-oriented oil company engaged in the acquisition, development and consolidation of interests in the prolific, multi-zone Bakken / Three Forks play in North Dakota. The Company is exposed to a combination of non-operated interests with established, experienced and efficient operators in the Williston Basin, as well as a significant operated property that recently demonstrated strong results. The Company’s lands are largely undrilled, exposing PetroShale to a significant inventory of drilling opportunities.
For further details regarding the Offering, please see the Company’s final short-form prospectus dated April 3, 2017, a copy of which is available under the Company’s profile on www.sedar.com.