Canaccord to Buy Oilexco Shares for Resale

Oilexco Incorporated has entered into an agreement with Canaccord Adams Limited pursuant to which Canaccord has agreed to purchase for resale to the public, on a bought deal basis, an aggregate of 15,000,000 common shares of Oilexco at a price of CDN$7.82 ((pnds stlg)3.44) per Common Share (the 'Issue Price'), resulting in gross proceeds of approximately US$100.7 million ((pnds stlg)51.6 million) (the 'Offering').

The terms of the offering provide for an option (the 'Over-Allotment Option') pursuant to which Canaccord may purchase the lesser of: (i) the 'over-allocation position' determined as at the Closing Date; and (ii) that number of Common Shares which represents 15% of the Common Shares sold pursuant to the Offering at the Issue Price. The Underwriter's Option will be exercisable by Underwriters, in whole or in part, at any time for 30 days following the closing. If the Over-Allotment Option is exercised in full, the gross proceeds of the Offering will be approximately US$115.8 million ((pnds stlg)59.34 million) in aggregate.

The transaction is subject to certain conditions including normal regulatory approvals. The Offered Shares will be offered in the provinces of Alberta, British Columbia and Ontario by way of a short form prospectus and on a private placement basis elsewhere, including in the United Kingdom. Closing is anticipated to occur on or about March 13, 2007.

Oilexco intends to use the proceeds of the offering for its exploration program in the North Sea and for working capital.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Accounting Analyst I Job
Expertise: Accounting|Financial Analyst
Location: Denver, CO
 
Specialist* Credit & Collections Job
Expertise: Accounting|Asset Management
Location: Eau Claire, WI
 
Audit Intern
Expertise: Financial Audit|Student / Recent Grad
Location: Chesterfield, MO
 
search for more jobs

Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours