CALGARY, ALBERTA–(Marketwired – May 27, 2016) – Delphi Energy Corp. (TSX:DEE) (“Delphi” or the “Company“) is pleased to announce it has filed a preliminary short form prospectus (the “Preliminary Prospectus“) in connection with a marketed underwritten offering, of 40,000 units of Delphi (the “Units“), for total aggregate proceeds of $40 million (the “Offering“).
Each Unit will consist of a $1,000 principal amount senior secured note due 2021 with an interest rate to be determined (“Collateralized Exchange Listed Notes” or “CEL Notes“) and 245 common share purchase warrants (“Warrants“). The Units will immediately separate into CEL Notes and Warrants upon issuance. The CEL Notes will mature on July 15, 2021. Interest on the CEL Notes will be payable quarterly in arrears. Each Warrant will entitle the holder thereof to purchase one common share of Delphi at an exercise price of $1.60, at any time until 5:00 pm on July 15, 2021. The CEL Notes and the Warrants will be governed by a note indenture and a warrant indenture, respectively, each of which will be entered into on the closing date of the Offering by the Company and Computershare Trust Company of Canada. Pricing of the Offering will be subject to approval by Delphi’s board of directors and the Company, upon completion of marketing.
Delphi filed the Preliminary Prospectus in all of the provinces of Canada except Québec. Delphi obtained a receipt from the Alberta Securities Commission on May 27, 2016. Completion of the Offering is subject to necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and must close prior to June 30, 2016.
The Company has applied to list the CEL Notes, the Warrants and the common shares issuable on the exercise of the Warrants distributed under this short form prospectus on the Toronto Stock Exchange. Listing will be subject to the Company fulfilling all of the applicable listing requirements of the Toronto Stock Exchange.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from Sara Minatel (1-416-777-4939; firstname.lastname@example.org; 40 King St. W, 54th Floor, Toronto, Ontario, M5H 3Y2, Canada). There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.