Business
Compton Petroleum announces closing of equity offering
Compton Petroleum announces closing of equity offering
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\nOct. 5, 2009 (Canada NewsWire Group) -- CALGARY, Oct. 5 /CNW/ -- Compton Petroleum Corporation (TSX - CMT, NYSE - CMZ) is pleased to announce that it has completed its previously announced public offering of units (\"Unit\") of Compton. Each Unit consists of one common share in the capital of Compton (a \"Common Share\") and one common share purchase warrant (a \"Warrant\"). Each Warrant is exercisable at $1.55 per share, at any time during the two years following closing.The offering was fully subscribed, including the over-allotment option, resulting in the purchase of 138,000,000 Units on a bought deal basis at a price of $1.25 per Unit. Total net proceeds to Compton are $161.4 million, which will be used to reduce the Corporation's bank debt and to strengthen its capital position. With the closing of this Offering, Compton has approximately 263 million Common Shares issued and outstanding.The offering was conducted through a syndicate of underwriters led by Canaccord Capital Corporation and included BMO Capital Markets, FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc. and Salman Partners Inc.The equity issue and the recently announced overriding royalty sales provide the means to reduce the Corporation's total debt by approximately $262.4 million, if the option on the overriding royalty is exercised in full. With the strengthening of its capital structure, Compton anticipates that it can now start shifting its focus to growth opportunities as it continues to assess additional debt reduction options.Forward Looking StatementsCertain information regarding the Corporation contained herein constitutes forward-looking information and statements and financial outlooks (collectively, \"forward-looking statements\") under the meaning of applicable securities laws, including Canadian Securities Administrators' National Instrument 51-102 Continuous Disclosure Obligations and the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, guidance, or other statements that are not statements of fact, including statements regarding (i) cash flow and capital and operating expenditures, (ii) exploration, drilling, completion, and production matters, (iii) results of operations, (iv) financial position, and (v)...