Verenex announced an agreement to sell, on a bought-deal basis, 6.9 million common shares at $14.50 per share for gross proceeds of CDN $100 million to a syndicate of underwriters. Verenex has granted the underwriters an over-allotment option to purchase an additional 1.035 million shares.
Vermilion is a significant shareholder of Verenex and, following completion of the financing, its ownership position will be 18.4 million shares representing between 41.8% and 42.8%, depending upon the exercise of the over-allotment option. Vermilion's cost base for all of the shares owned by Vermilion in Verenex will be approximately $55 million with a fair market value of $266 million based on the issue price of $14.50 per share.
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