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Southern Energy Corp. Announces Closing of Strategic Asset Acquisition in the Southern United States and $8.1 Million Convertible Debenture Financing
Southern Energy Corp. Announces Closing of Strategic Asset Acquisition in the Southern Uni...
About this update from Southern Energy Corp.
[{"type":"text","content":"\n\n\n\nSouthern Energy Corp. Announces Closing of Strategic Asset Acquisition in the Southern United States and $8.1 Million Convertible Debenture Financing\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.prntaj{\nTEXT-ALIGN: JUSTIFY\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, June 14, 2019\n\n\n\nCALGARY, June 14, 2019 /CNW Telbec/ - Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV: SOU) has completed its previously announced acquisition of high quality, low decline natural gas assets (the \"Assets\") in the State of Mississippi for cash consideration of US$16.5 million ($22.0 million), subject to customary adjustments (the \"Acquisition\").\n\"We are happy to announce the closing of this acquisition as it further illustrates our ability to execute our business plan\", stated Ian Atkinson, President and CEO of the Company. \"Southern continues to position itself for significant growth in the US Gulf Coast States where commodity prices are the highest in North America.\"\nConcurrent with the completion of the Acquisition, the Company closed its previously announced convertible debenture financing (the \"Financing\", and together with the Acquisition, the \"Transaction\") with a syndicate of agents co-led by Laurentian Bank Securities Inc. and Eight Capital, and including Cormark Securities Inc., Desjardins Securities Inc., Canaccord Genuity Corp. and Haywood Securities Inc. (the \"Agents\"), pursuant to which the Company sold an aggregate principal amount of $8.1 million of convertible unsecured subordinated debentures of the Company (the \"Debentures\"), inclusive of $283,000 of Debentures issued as commission to the Agents for the Financing.  The net proceeds from the Financing were used, along with cash on hand and a further draw on the Company's credit facility (see below), to fund the Acquisition.\nLaurentian Bank Securities Inc. and Eight Capital acted as financial advisors to Southern on the Transaction.\nThe Debentures, as well as the common shares issuable upon conversion of the Debentures which are issued within four months of issuance of the Deben...