CALGARY, ALBERTA–(Marketwired – Feb. 28, 2017) – Blackbird Energy Inc. (“Blackbird” or the “Company”) (TSX VENTURE:BBI) is pleased to announce that, further to its press release dated February 27, 2017, the Company has increased the size of its previously announced marketed public offering (the “Offering“) due to strong demand. The Offering will consist of: (i) up to 110.0 million common shares of the Company (the “Common Shares“) at a price of $0.55 per Common Share for gross proceeds of up to $60.5 million; (ii) up to 25.8 million Common Shares to be issued on a “CEE flow-through” basis (the “CEE Flow-Through Shares“) at a price of $0.64 per CEE Flow-Through Share for gross proceeds of up to $16.5 million; and (iii) up to 6.8 million Common Shares to be issued on a “CDE flow-through” basis (the “CDE Flow-Through Shares“, and, collectively with the Common Shares and the CEE Flow-Through Shares, the “Shares“) at a price of $0.59 per CDE Flow-Through Share for gross proceeds of up to $4.0 million, for aggregate gross proceeds of up to $81.0 million.
The Offering is being conducted through a syndicate of agents (the “Agents“) co-led by Cormark Securities Inc., Pareto Securities AS and TD Securities Inc., and including BMO Capital Markets, Scotia Capital Inc., Haywood Securities Inc., Laurentian Bank Securities Inc., Raymond James Ltd. and Jett Capital Advisors, LLC.
The Agents have been granted an over-allotment option, exercisable in whole or in part for a period of up to 30 days following the Closing Date (as described below), to offer for sale up to an additional 15% of each of the Common Shares, CEE Flow-Through Shares and CDE Flow-Through Shares sold pursuant to the Offering, and such additional shares shall be issued on the same terms and at the same price as those otherwise sold under the Offering (the “Over-Allotment Option“).
A preliminary short form prospectus in respect of the Offering dated February 27, 2017 (the “Preliminary Prospectus“) has been filed in all of the provinces of Canada (other than Québec) pursuant to National Instrument 44-101 – Short Form Prospectus Distributions. The Common Shares may also be sold in the United States and other jurisdictions pursuant to exemptions from registration requirements. The Company intends to file an amended and restated preliminary short form prospectus with the securities regulatory authorities in each of the provinces of Canada, except Québec, to reflect the increased size of the Offering and to provide additional details concerning the Offering, including pricing information (the “Amended and Restated Preliminary Prospectus“).
The net proceeds of the Offering, including any proceeds received upon the exercise of the Over-Allotment Option granted to the Agents, are expected to be used by the Company to fund the drilling and completion operations for approximately 12 Elmworth / Pipestone Montney wells and to incur related tie-in, equipping and pipeline gathering system costs, as well as for general corporate purposes. Please see “Use of Proceeds” in the Preliminary Prospectus, which is available under the Company’s profile at www.sedar.com, for further details of the use of net proceeds from the Offering.
The Company has applied to list the Shares on the TSX Venture Exchange (the “TSXV“). Listing will be subject to the Company fulfilling all of the listing requirements for the TSXV. The completion of the Offering is subject to certain conditions, including the receipt of all necessary regulatory approvals, including the approval of the TSXV. Closing of the Offering is expected to occur on or about March 14, 2017 (the “Closing Date“).
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the condensate and liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta.