BNK Petroleum has entered into an agreement with a syndicate of underwriters co-led by Macquarie Capital Markets and Canaccord Financial, under which the Underwriters have agreed to purchase, on a bought deal basis, 15,800,000 common shares of the company at $2.85 per Common Share to raise gross proceeds of $45,030,000. Closing of the Offering, which is subject to customary conditions and regulatory approvals, including approval of the Toronto Stock Exchange, is expected on or about May 18, 2010. BNK has also granted the Underwriters an over-allotment option to purchase, on the same terms, up to an additional 2,370,000 Common Shares. This option is exercisable, in whole or in part, by the Underwriters, in their sole discretion, at any time up to 30 days after closing. The maximum gross proceeds raised under the Offering will be $51,784,500, should the over-allotment option be exercised in full.
The net proceeds from this Offering will be used to fund the Company's exploration and development program in Europe and the United States and for general corporate purposes.
The Common Shares to be issued under the Offering will be offered by way of a short form prospectus to be filed in Alberta, British Colombia, Ontario, and such other Canadian Provinces or territories as the syndicate and the Company may agree; and in the United States on a private placement basis pursuant to exemptions from the registration and prospectus requirements of the United States Securities Act of 1933.
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