Business
Cenovus and Headwater announce the closing of $227.5 million bought deal secondary offering of Headwater common shares
Cenovus and Headwater announce the closing of $227.5 million bought deal secondary offeri...
About this update from Cenovus Energy Inc.
[{"type":"text","content":"\n \n \n \n Cenovus and Headwater announce the closing of $227.5 million bought deal secondary offering of Headwater common shares\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN\n \n THE UNITED STATES\n \n /\n \n \n \n \n CALGARY, AB\n \n ,\n \n Oct. 14, 2021\n \n /CNW/ - Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) (\"Cenovus\") and Headwater Exploration Inc. (TSX: HWX) (\"Headwater\" or the \"Company\") have closed the previously announced bought deal secondary offering (the \"Offering\") of common shares of Headwater (the \"Common Shares\"). The Offering was completed on a bought deal basis, pursuant to an underwriting agreement dated effective\n \n September 27, 2021\n \n among the Company, Cenovus, Cenovus Marten Hills Partnership, a wholly-owned subsidiary of Cenovus (the \"Selling Shareholder\"), and a syndicate of underwriters led by Peters & Co. Limited and BMO Nesbitt Burns Inc. and including CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., and TD Securities Inc. (collectively, the \"Underwriters\").\n \n \n Pursuant to the Offering, Cenovus, through the Selling Shareholder, sold a total of 50,000,000 Common Shares (collectively, the \"Offered Shares\"), including 5,000,000 Common Shares sold pursuant to the exercise in full of an over-allotment option granted to the Underwriters. The Offered Shares were sold at a price of\n \n $4.55\n \n per Offered Share for total gross proceeds to the Selling Shareholder of\n \n $227,500,000\n \n . The Company has not and will not receive any of the proceeds of the Offering. In connection with the Offering, the Underwriters received a cash commission equal to 4% of the gross proceeds from the sale of the Offered Shares.\n \n \n The Selling Shareholder and the Company entered into an investor agreement dated\n \n December 2, 2020\n \n (the \"Investor Agreement\") in connection with the issuance of Common Shares and Common Share purchase warrants (the \"...