CALGARY, ALBERTA–(Marketwired – Jan. 6, 2017) – PrairieSky Royalty Ltd. (“PrairieSky” or the “Company”) (TSX:PSK) is pleased to announce it has completed its previously announced acquisition of a 4% Gross Overriding Royalty on current and future phases of Pengrowth Energy Corporation’s Lindbergh SAGD thermal oil project, as well as seismic over certain lands in British Columbia and Alberta, for total cash consideration of $250 million.
The Company also completed the previously announced bought deal offering of common shares (the “Offering”). Pursuant to the Offering, the Company issued 9,200,000 common shares (including 1,200,000 common shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at a price of $31.40 per common share, for aggregate gross proceeds of approximately $288.9 million. The syndicate of underwriters was led by TD Securities Inc. as the sole bookrunner and co-led by CIBC Capital Markets.
The common shares issued from the Offering will be eligible to receive the dividend for the month of January 2017, which is expected to be paid on or about February 15, 2017 to shareholders of record on January 31, 2017.
The securities of PrairieSky have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws. Accordingly, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of PrairieSky’s common shares in the United States.