CALGARY, ALBERTA–(Marketwired – April 5, 2017) –
NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW
Painted Pony Petroleum Ltd. (“Painted Pony” or the “Corporation“) (TSX:PPY) is pleased to announce that it has closed its previously announced bought deal financing (the “Offering“). Pursuant to the Offering, the Corporation has issued a total of 19,820,000 common shares in the capital of the Company (“Common Shares“), which included the full exercise of the over-allotment option granted to the underwriters of the Offering. All of the Common Shares were issued at a price of $5.60 per Common Share for gross proceeds of approximately $111 million.
The Offering was co-led by Cormark Securities Inc. and TD Securities Inc. and also included GMP FirstEnergy, Scotia Capital Inc., Canaccord Genuity Corp., RBC Capital Markets, Raymond James Ltd., AltaCorp Capital Inc. and CIBC World Markets Inc.
Certain affiliates, insiders and employees of Painted Pony participated in the Offering by purchasing 374,700 Common Shares at a price of $5.60 per Common Share.
Painted Pony intends to use the total net proceeds of the Offering (including the net proceeds realized from the exercise of the over-allotment option) to: (i) fund a portion of its 2017 and 2018 capital program in respect of the previously announced acquisition of UGR Blair Creek Ltd. (the “Acquisition“) and for general corporate purposes; and (ii) if the Acquisition does not close, for the development of its assets and for general corporate purposes. In the interim, and to most efficiently use the net proceeds of the Offering, the Corporation intends to initially apply the total net proceeds of the Offering to reduce indebtedness under its credit facilities that has been incurred, principally, for the development of its assets and for general corporate purposes. An equivalent amount will then be redrawn under the Corporation’s credit facilities, as and when required, to implement its capital program over 2017 and 2018 (including the development of the assets acquired pursuant to the Acquisition) or in the event the Acquisition is not completed, to develop the current portfolio of its gas and natural gas liquids assets.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
This press release contains forward-looking information that involves known and unknown risks and uncertainties, most of which are beyond Painted Pony’s control, including, without limitation, those listed under “Risk Factors” and “Advisories – Forward-Looking Information” in Painted Pony’s Annual Information Form and in its other filings available on SEDAR at www.sedar.com. This press release contains forward-looking information in respect of, but not limited to, the Acquisition and the anticipated use of proceeds of the Offering. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, undue reliance should not be placed on this forward-looking information. This forward-looking information is made as of the date of this release and, other than as required by applicable securities laws, Painted Pony does not assume any obligation to update or revise it to reflect new events or circumstances. The forward-looking information contained in this release is expressly qualified by this cautionary statement.
ABOUT PAINTED PONY
Painted Pony is a publicly-traded natural gas Corporation based in Western Canada. The Corporation is primarily focused on the development of natural gas and natural gas liquids from the Montney formation in northeast British Columbia. Painted Pony’s common shares trade on the Toronto Stock Exchange under the symbol “PPY”.
Patrick R. Ward
President and CEO
Painted Pony Petroleum Ltd.
John H. Van de Pol
Senior Vice President and CFO
Painted Pony Petroleum Ltd.
Director, Investor Relations