Business
Stratic and Grove Energy agree business combination and announces C$50 million financing
Stratic and Grove Energy agree business combination and announces C$50 million financing.
About this update from Surge Copper Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE\n\n\nU.S./\n\n\nCALGARY and VANCOUVER, Feb. 6 /CNW/ - Stratic Energy Corporation (TSX-V:\nSE) (\"Stratic\") and Grove Energy Limited (TSX-V and AIM: GRV) (\"Grove\")\nannounce that they have agreed to merge their respective businesses, subject\nto approval by Grove's shareholders and to certain other conditions. The\ncombined company will be called Stratic Energy Corporation and its Chief\nExecutive Officer will be Kevin Watts. Wolfgang Zimmer, Grove's current Chief\nExecutive Officer will become President and Chief Operating Officer and will\njoin the board of the combined company. Andrew Childs will also join the board\nas a non-executive director. Sir Graham Hearne will remain as Chairman. The\nproposed transaction has been approved by the boards of both Stratic Energy\nCorporation and Grove Energy Limited.\n\n\nStratic Energy Corporation also announces that it has entered into an\nagreement to raise, by way of a bought deal private placement financing,\nC$50,000,000 through the issue and sale of 37,037,037 common shares at a price\nof C$1.35 per share. The funds are being raised by a syndicate of underwriters\nled by GMP Securities L.P., and including Tristone Capital Inc., Westwind\nPartners Inc., Dundee Securities Corporation and Toll Cross Securities Inc.\nThe net proceeds from the financing will be used to fund the development of\nthe combined company's oil and natural gas development projects, including\nacquisitions, and for general working capital purposes. Half of the funds are\nbeing raised on a subscription receipts basis conditional on completion of the\nproposed merger between the two companies. Closing of the private placement is\nexpected to occur on or about 6th March 2007 and is subject to the receipt of\nall necessary regulatory and stock exchange approvals. The common shares\nissued will be subject to a four-month hold period from that date.\n\n\nThe new business will own interests in development projects in its core\nareas of the Black Sea (offshore Turkey), the North Sea (UK and Netherlands\nsectors) and The Po Valley (onshore Italy). The company will also own longer\nterm exploration acreage in Tunisia, Syria, Morocco, Slovenia and Romania, but\nintends to rationalize these areas over the balance of the current year. First\n...