Transaction|November 30, 2015
Gear Energy closes C$25.8 million financing
Torys acted as counsel to the syndicate of investment dealers co-led by GMP Securities and Peters & Co. with a team that included Scott Cochlan, Janan Paskaran, Mike Pedlow, Matthew Lui and Kay Turner.
On November 30, 2015, Gear Energy Ltd. (Gear) closed its previously announced C$25.8 million financing. Through a syndicate of underwriters co-led by GMP Securities L.P. and Peters & Co. Limited, Gear issued and sold: (i) 12,000,000 common shares, on a "bought deal" basis, at a price of C$0.75 per common share for gross proceeds of C$9 million; (ii) 2,666,700 common shares, on a private placement basis, at a price of C$0.75 per common share for gross proceeds of approximately C$2 million; and (iii) C$14.8 million principal amount of 4.00% convertible unsecured subordinated debentures. maturing on November 30, 2020, also on a private placement basis.
The net proceeds of the offering will initially be used to reduce bank indebtedness, which may be redrawn to fund Gear's 2016 capital expenditure program and for general corporate purposes.
Gear is Canadian energy company focused on the exploration and development of heavy oil weighted production primarily in east central Alberta and west central Saskatchewan.
Further information can be found on Gear's website.