CALGARY, ALBERTA–(Marketwired – June 15, 2016) – NuVista Energy Ltd. (“NuVista” or the “Company”) (TSX:NVA) is pleased to announce the issuance by way of a private placement, of up to 3.16 million common shares on a “flow-through” basis pursuant to the Income Tax Act (Canada) at a price of $6.65 per share for gross proceeds of approximately $21.0 million (the “Offering”). The purchasers shall be entitled to renunciations of Canadian Development Expenses (“CDE”). In addition, certain directors, officers and employees of the Company intend to acquire on a non-brokered basis up to 92,000 common shares on a “flow-through” basis for total proceeds of $0.6 million on the same terms. Total net proceeds to the Company, after expenses related to the Offering and the non-brokered private placement, are estimated to be approximately $21.5 million.
Proceeds from the Offering will be used to partially finance the Company’s increased drilling and completion expenditures during the remainder of 2016.
NuVista 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. NuVista shall renounce the Qualifying Expenditures so incurred to the purchasers of the flow-through common shares effective on or prior to December 31, 2016.
The Offering is scheduled to close on or near June 28, 2016 and is subject to standard closing conditions and customary regulatory approvals including that of the Toronto Stock Exchange (the “TSX”). The common shares issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the date of closing, in accordance with applicable securities legislation. Following the closing of the Offering, NuVista will have approximately, 156.6 million shares outstanding. Please refer to our website (www.nuvistaenergy.com) for additional detail regarding our augmented growth and liquidity. The updated June, 2016 corporate presentation is expected to be available later on today.