Transaction|June 29, 2016

Gear Energy closes bought deal equity financing

Torys acted as counsel to the underwriters led by Peters & Co. with a team that included Scott Cochlan and Yvan Moquin (corporate/securities).

On June 29, 2016, Gear Energy Ltd. (Gear) announced the closing of its previously announced bought deal financing. Pursuant to the financing, Gear issued and sold through a syndicate of underwriters led by Peters & Co. Limited an aggregate of 28,750,000 common shares at a price of C$0.70 per common share, including 3,750,000 common shares issued pursuant to the exercise in full of the over-allotment option, for gross proceeds of C$20,125,000.

The net proceeds from the offering will initially be used to repay outstanding bank indebtedness thereby freeing up borrowing capacity which may be used to fund a portion of the company's ongoing capital program and for working capital purposes.

Gear is a Canadian exploration and production company with predominantly horizontal oil production in east central Alberta and west central Saskatchewan.

Further information can be found on Marketwired's website.