CALGARY, Alberta, Feb. 12, 2019 (GLOBE NEWSWIRE) –Pieridae Energy Limited (“Pieridae”) (TSXV: PEA) is pleased to announce that it has entered into an agreement with a syndicate of investment dealers co-led by KES 7 Capital Inc. (“KES 7”), National Bank Financial Inc. (“NBF”), and Laurentian Bank Securities Inc. with KES 7 and NBF acting as joint book runners, in connection with a commercially reasonable efforts agency private placement of up to 7,500,000 common shares at a price of $2.00 per share (the “Offering Price”) for gross proceeds of up to $15.0 million (the “Offering”). In addition, the Company has granted the agents an over-allotment option, exercisable for a period of 30 days from closing, to sell additional Common Shares representing 20% of the base Offering at the Offering Price.
Concurrent with the Offering, the Company may complete a non-brokered private placement of common shares to insiders and other investors identified by the Company to be included on a president’s list at a price of $2.00 per common share for aggregate gross proceeds of up to $5.0 million (the “Non-Brokered Offering”). Certain directors and executive officers of Pieridae are expected to subscribe for common shares in the Non-Brokered Offering, either directly or indirectly.
Participating in the brokered private placement, and subject to normal course closing provisions, Alberta Investment Management Corporation (“AIMCo”) has agreed to make a strategic investment in Pieridae on behalf of certain of its clients. AIMCo has agreed to purchase 5,000,000 common shares at $2.00.
“AIMCo continues to provide Pieridae with exceptional financial support in this very difficult commodity price environment. The investment from AIMCo and others will provide us with additional financial flexibility as we move toward a final investment decision.” says Alfred Sorensen, CEO of Pieridae.
The Company anticipates using the net proceeds of the Offering for working capital and general corporate purposes. The Offering is expected to close on or about February 28, 2019. The Offering and the Non-Brokered Offering are subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The Company continues to pursue preparatory work in relation to a final investment decision for the Goldboro LNG facility including the procurement of additional natural gas prone properties, and gas exploration and development activities.
Founded in 2011, Pieridae, a majority Canadian owned corporation based in Calgary, is focused on the development of integrated energy-related activities, from the exploration and extraction of natural gas to the development, construction and operation of the Goldboro LNG facility and the production of LNG for sale to Europe and other markets. Pieridae is on the leading edge of the re-integration of the LNG value chain in North America. Pieridae has 74,527,875 common shares issued and outstanding which trade on the TSX Venture Exchange (PEA).