Pieridae Energy Limited (“Pieridae” or the “Company”) (TSXV: PEA) is pleased to announce that it has closed the first tranche of its previously announced brokered private placement of Company subscription receipts (the “Offering”). Pieridae has issued 14,970,070 subscription receipts of the Company at a price of $0.86 per subscription receipt for gross proceeds of $12,874,260.20. Pieridae has also closed on the issuance of 711,967 subscription receipts, at a price of $0.86, on a non-brokered basis, for gross proceeds of approximately $612,291.62.
The second and last tranche of the Offering for gross proceeds of approximately $19,999,999.18 is expected to close October 15, 2019.
Haywood Securities Inc. is acting as sole agent with respect to the Offering.
Haywood Securities Inc. is also acting as financial advisor to Pieridae in regard to its proposed acquisition of certain midstream and upstream properties from Shell Canada Energy that was previously announced by the Company on June 26, 2019 (the “Acquisition”).
On the closing of the Acquisition, which is expected to occur October 15, 2019, each subscription receipt issued under the Offering will automatically be exchanged for one common share of Pieridae, on a one-to-one basis, without any further action on the part of the subscriber and without payment of additional consideration.
The gross proceeds from the Offering will be held by a trustee, as escrow agent, and will either be paid (net of permitted deductions) to the Company on the closing date of the Acquisition or repaid to the subscribers (plus any accrued interest) if the closing of the Acquisition does not occur on or before the date that is 90 days after the closing date of the offering or if the Acquisition is terminated at any earlier time pursuant to the terms and conditions of the purchase and sale agreement made with Shell Canada Energy. Pieridae will use all of the net proceeds of the Offering to partially fund the purchase price payable for the Acquisition and for working capital purposes.
All references in this news release to “$” are in Canadian dollars.
Founded in 2011, Pieridae, a majority Canadian owned corporation based in Calgary, Alberta 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 presently has 86,713,713 common shares issued and outstanding which trade on the TSX Venture Exchange under the symbol (PEA).