CALGARY, ALBERTA–(Marketwired – Jan. 14, 2016) – Petrus Resources Ltd. (“Petrus” or the “Company“) is pleased to announce that Petrus Acquisition Corp. (“New Petrus“) has completed the previously announced bought deal financing of 16,217,000 subscription receipts (“Subscription Receipts“) at an issue price of $1.85 per Subscription Receipt (the “Private Placement“) for aggregate gross proceeds of approximately $30 million with a syndicate of underwriters led by FirstEnergy Capital Corp. (“FirstEnergy“) and GMP Securities L.P. (“GMP” and, together with FirstEnergy, the “Co-Lead Underwriters“) and including Cormark Securities Inc., National Bank Financial Inc., Dundee Securities Ltd. and Macquarie Capital Markets Canada Ltd.
The gross proceeds from the Private Placement will be held in escrow pending the receipt by the escrow agent of a notice from Petrus and New Petrus, acknowledged by the Co-Lead Underwriters, that all conditions precedent set forth in the arrangement agreement dated November 29, 2015, as amended on December 15, 2015 (the “Arrangement Agreement“), among Petrus, New Petrus, PhosCan Chemical Corp. (“PhosCan“) and a wholly-owned subsidiary of PhosCan have been satisfied or waived. If such notice is received on or before 5:00 p.m. (Calgary time) on February 16, 2016 (the “Transaction Deadline“), the proceeds from the Private Placement and any interest thereon will be released to New Petrus and each Subscription Receipt will entitle the holder thereof to 0.25 of a common share in the capital of New Petrus (the “New Petrus Shares“) without further payment or action on the part of the holder. If such notice is not received on or before the Transaction Deadline, the Arrangement Agreement is terminated at any earlier time or New Petrus and/or Petrus advises the Co-lead Underwriters or announces to the public that it does not intend to proceed with the Arrangement (as defined in the Arrangement Agreement), holders of Subscription Receipts will receive a cash payment equal to the issue price of the Subscription Receipts and any interest that was earned thereon during the time of escrow.
The net proceeds from the Private Placement (if released from escrow) will be used to pay down Petrus’ corporate debt, to fund the ongoing exploration and development program of New Petrus and for general corporate purposes of New Petrus.
Petrus is also pleased to announce that New Petrus (to be renamed “Petrus Resources Ltd.” pursuant to the Arrangement) has received conditional approval for the listing of the New Petrus Shares on the Toronto Stock Exchange (“TSX“) under the symbol “PRQ” subsequent to the completion of the Arrangement. Such listing is subject to compliance with the requirements of the TSX.
Petrus is a Canadian oil and gas company focused on property exploitation and strategic acquisitions in Alberta. Petrus has established a sustainable platform of low decline, low operating cost assets with a multi-year inventory of repeatable, low risk, economic drilling locations.