Delphi Energy Corp. (“Delphi” or the “Company”) is pleased to announce that it has completed the second closing in respect of its previously announced private placement offerings of subscription receipts (the “Offerings”) for aggregate gross proceeds of $44.4 million today. Together with proceeds raised in the first closing of the Offerings on October 15, 2019, Delphi has raised the maximum total gross proceeds of $46.5 million pursuant to the Offerings.
Pursuant to the Offerings, Delphi issued 17,384,306 equity subscription receipts (“ESRs”) today at a price of $1.65 per ESR (the “ESR Price”) for gross proceeds of approximately $28.7 million and 20,933 note subscription receipts (“NSRs”) today at a price of $750 per NSR (the “NSR Price”), plus accrued and unpaid interest from October 15, 2019, for gross proceeds of approximately $15.7 million. Affiliates of a pooled investment vehicle of Luminus Management, LLC subscribed for 16,778,306 ESRs for gross proceeds of approximately $27.7 million and 16,933 NSRs for gross proceeds of approximately $12.7 million under the Offerings.
In total, Delphi has issued 18,181,818 ESRs at the ESR Price (for total proceeds of approximately $30 million) and 22,000 NSRs (for total proceeds of approximately $16.5 million) under the Offerings. The proceeds of the Offerings will be held in escrow pending the satisfaction of certain escrow release conditions, including the implementation of a plan of arrangement pursuant to section 192 of the Canada Business Corporations Act as part of Delphi’s previously announced recapitalization transaction (the “Recapitalization Transaction”). Upon their release, Delphi will use the proceeds of the Offerings to further develop its reserves and fund capital expenditures.
Raymond James Ltd. and AltaCorp Capital Inc. acted as agents in connection with the Offerings.