CALGARY, ALBERTA–(Marketwired – April 26, 2016) – Blackbird Energy Inc. (“Blackbird” or the “Company“) (TSX VENTURE:BBI) is pleased to announce that it has filed an amended and restated preliminary short form prospectus in connection with a marketed public offering, through a syndicate of agents (the “Agents“), co-led by Dundee Securities Ltd. and Haywood Securities Inc., and including Scotia Capital Inc., Raymond James Ltd., Cormark Securities Inc. and Mackie Research Capital Corporation, of: (i) up to 153,400,000 units (“Units“) of the Company at a price $0.15 per Unit, for gross proceeds from the offering of Units of up to $23,010,000 (the “Unit Offering“); and (ii) up to 13,400,000 common shares of the Company (“Common Shares“) to be issued on a “CDE flow-through” basis (“Flow-Through Shares“) at a price of $0.15 per Flow-Through Share, for gross proceeds from the offering of Flow-Through Shares of up to $2,010,000 (the “Flow-Through Offering“, and together with the Unit Offering, the “Offering“). The aggregate gross proceeds from the Offering will be up to $25,020,000.
Each Unit will consist of one Common Share and one Common Share purchase warrant of the Company (“Warrant“). Each Warrant will entitle the holder thereof to acquire, subject to adjustment in accordance with the indenture governing the Warrants, one Common Share (each, a “Warrant Share“) at an exercise price of $0.30 per Warrant Share, at any time prior to the date that is 60 months following the closing date of the Offering (the “Closing Date“). The Warrants will be governed by a warrant indenture to be entered into on or before the Closing Date between Blackbird and Computershare Trust Company.
The Agents have been granted an over-allotment option, exercisable in whole or in part for a period of up to 30 days following the Closing Date, to offer for sale up to an additional 15% of the Units sold pursuant to the Unit Offering on the same terms, as described above. The Agents have also been granted an over-allotment option, exercisable in whole or in part prior to the Closing Date, to offer for sale up to an additional 15% of the Flow-Through Shares sold pursuant to the Flow-Through Offering on the same terms, as described above.
The net proceeds of the Offering, including any proceeds received upon the exercise of the over-allotment option granted to the Agents, are expected to be used by the Company: (i) to finance the costs of a battery, a pipeline gathering system and water disposal facilities at Blackbird’s Elmworth project; (ii) to finance the drilling and completion costs of Blackbird’s fourth Montney well at the Company’s Elmworth project; and (iii) general corporate purposes. Please see “Use of Proceeds” in the amended and restated preliminary prospectus for further details of the use of net proceeds from the Offering.
The Units and Flow-Through Shares will be offered for sale in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of a short form prospectus pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and the Units may be sold in the United States and other jurisdictions pursuant to exemptions from registration requirements.
The completion of the Offering is subject to certain conditions, including the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. Closing of the Offering is expected to occur on or about May 19, 2016.
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the condensate and liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta.