- Obsidian Energy (OBE) has closed its previously announced marketed public offering of subscription receipts for gross proceeds of approximately $25.9 million
- The oversubscribed offering was conducted by a syndicate of agents who exercised the over-allotment option
- Each subscription receipt represents the right to receive one common share of Obsidian Energy
- Net proceeds from the offering will be used to facilitate the acquisition of the remaining 45 per cent interest in the company’s Peace River Oil Partnership
- The gross proceeds from the sale of the subscription receipts will be held in escrow pending the completion of the acquisition
- The subscription receipts will be listed for trading on the TSX under the symbol OBE.R
- Obsidian Energy Ltd. (OBE) is down 0.65 per cent on the day, trading at C$4.62 per share at 3 pm ET
Obsidian Energy (OBE) has closed its previously announced marketed public offering of subscription receipts for gross proceeds of approximately $25.9 million.
The oversubscribed offering was conducted by a syndicate of agents. The agents fully exercised the available 15 percent over-allotment option.
Each subscription receipt represents the right to receive one common share of Obsidian Energy.
The company will use the net proceeds from the offering to facilitate the acquisition of the remaining 45 per cent interest in the company’s Peace River Oil Partnership.
Given that the offering was oversubscribed, and the over-allotment option was exercised in full, the entire purchase price will be paid in cash and no common shares will be issued to the vendor. The acquisition is expected to close on or about November 24, 2021.
The gross proceeds from the sale of the subscription receipts will be held in escrow pending the completion of the acquisition. If all conditions to the completion of the acquisition are satisfied or waived, the net proceeds will be released from escrow to Obsidian Energy. If the acquisition agreement is terminated or the company advises that it does not intend to proceed with the acquisition, then the purchase price for the subscription receipts will be returned pro-rata to subscribers.
The subscription receipts will be listed for trading on the TSX under the symbol OBE.R. Obsidian Energy Ltd. (OBE) is down 0.65 per cent on the day, trading at C$4.62 per share at 3 pm ET.