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.
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