CALGARY, AB – Source Rock Royalties Ltd. (“Source Rock”) (TSXV: SRR) (TSXV: SRR.WT) announces that it has closed its initial public offering (the “Offering”) of 13,667,100 units (each a “Unit” and collectively, the “Units”) at a price of $0.90 per Unit (the “Offering Price”) (including 333,100 Units sold in connection with the partial exercise of the Over-Allotment Option), for aggregate gross proceeds of $12,300,390, pursuant to a long form prospectus dated February 23, 2022 (the “Prospectus”). The Underwriters (as defined below) retain an option for 30 days following March 1, 2022 to purchase up to an additional 1,667,000 Units (in addition to the 333,100 Units already purchased) at the Offering Price (the “Over-Allotment Option”).
Each Unit consists of one common share of Source Rock (each a “Common Share” and collectively, the “Common Shares”) and one-half of one Common Share purchase warrant (each whole warrant a “Warrant” and collectively, the “Warrants”). Each Warrant entitles the holder to purchase one Common Share of Source Rock at an exercise price of $1.25 until March 1, 2024.
Source Rock’s Common Shares and the Warrants are expected to commence trading on the TSX Venture Exchange (“TSXV”) on March 2, 2022 under the symbols “SRR” and “SRR.WT“, respectively.
Brad Docherty, Chairman, President & CEO of Source Rock, said: “We are excited for Source Rock to commence trading on the TSX Venture Exchange as the only publicly listed junior oil and gas royalty company in Canada. We would like to thank our existing shareholders for their support during our 9 years as a private company and we greatly appreciate the interest of new shareholders in the Offering. We believe that now is an opportune time for Source Rock, as a niche consolidator of oil and gas royalties in the Western Canadian Sedimentary Basin, to take our proven balanced growth and yield business model to the TSX Venture Exchange. The net proceeds of the Offering will be used to expand our portfolio of light oil focused royalties. In doing so, we look forward to building on our working relationships with oil and gas producers seeking non-dilutive capital for drilling & acquisitions and royalty owners interested in liquidity.“
The Offering was completed through a syndicate of underwriters co-led by PI Financial Corp. (as Sole Bookrunner) and Acumen Capital Finance Partners Limited, together with Haywood Securities Inc., Canaccord Genuity Corp. and ATB Capital Markets Inc. (collectively, the “Underwriters”).
Additional information about Source Rock can be found in the Prospectus, which is available under Source Rock’s profile on SEDAR at www.sedar.com.
The securities under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States. Accordingly, the securities may not be offered, sold or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act), unless being done so pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Source Rock in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.