CALGARY, ALBERTA–(Marketwired – June 16, 2016) – Bonavista Energy Corporation (“Bonavista”) (TSX:BNP) is pleased to announce that it has closed its previously announced bought deal financing of 34,328,650 common shares (the “Common Shares”) of which 4,477,650 Common Shares were issued pursuant to the exercise of the over-allotment option granted to the underwriters, at $3.35 per Common Share to raise gross proceeds of approximately $115 million (the”Offering”). The syndicate of underwriters was co-led by CIBC Capital Markets and TD Securities Inc.
The net proceeds of the Offering will be used initially to reduce Bonavista’s bank indebtedness. Given the strong results of Bonavista’s drilling program and significant efficiencies achieved year-to-date, this financing allows Bonavista the latitude to expand its capital program upon the realization of the futures commodity price forecast. Bonavista will remain focused on consolidation opportunities within its core areas, while rationalizing non-core assets to further enhance financial flexibility.
This press release is not an offer of the Common Shares for sale in the United States. The Common Shares may not be offered or sold in the United States absent registration or an exemption from registration. The Common Shares will not be publicly offered in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act, or any state securities laws.
Bonavista is a mid-sized dividend paying energy corporation focused on the efficient development of high quality oil and natural gas assets while providing sustainable value to shareholders.