Gear Energy closes bought deal equity financing

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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