CALGARY, ALBERTA–(Marketwired – June 29, 2016) – Gear Energy Ltd. (“Gear” or the “Company”) (TSX:GXE) is pleased to announce the closing of its previously announced bought deal financing. Pursuant to the financing, Gear has issued and sold through a syndicate of underwriters led by Peters & Co. Limited an aggregate of 28,750,000 common shares of the Company at a price of $0.70 per common share, which includes 3,750,000 common shares issued pursuant to the exercise in full of the over-allotment option, for gross proceeds of $20,125,000 (the “Offering”).
The net proceeds from the Offering will initially be used to repay outstanding bank indebtedness thereby freeing up borrowing capacity which may be used to fund a portion of the Company’s ongoing capital program and for working capital purposes.
Gear Energy Ltd. is a Canadian exploration and production company with predominantly horizontal oil production in east central Alberta and west central Saskatchewan. The current and ongoing business plan is to continue focusing on being a low cost heavy oil operator, drilling economic wells and acquiring assets on an accretive basis.