Business
Surge Energy Inc. Upsizes Previously Announced "Bought Deal" Public Offering of Flow-Through Common Shares
Surge Energy Inc. Upsizes Previously Announced "Bought Deal" Public Offering of Flow-Thro...
About this update from Surge Energy Inc.
[{"type":"text","content":"\n \n \n \n Surge Energy Inc. Upsizes Previously Announced \"Bought Deal\" Public Offering of Flow-Through 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 \n N/OT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN\n \n THE UNITED STATES\n \n /\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n April 29, 2021\n \n /CNW/ - Surge Energy Inc. (\"\n \n Surge\n \n \" or the \"\n \n Company\n \n \") (TSX: SGY) is pleased to announce that, as a result of excess demand, it has agreed with the syndicate of underwriters, led by Cormark Securities Inc. and National Bank Financial Inc. (collectively, the \"\n \n Underwriters\n \n \"), to increase the size of its previously announced bought deal public offering of flow-through common shares. The Company will now issue 33,900,000 common shares (the \"\n \n Flow-Through Shares\n \n \") of Surge, to be issued as \"flow-through shares\" with respect to \"Canadian development expenses\" within the meaning of the\n \n Income Tax Act\n \n (\n \n Canada\n \n ) and the regulations thereunder in force as of the date hereof (the \"\n \n Tax Act\n \n \") at a price (the \"\n \n Offering Price\n \n \") of\n \n $0.59\n \n per Flow-Through Share, for gross proceeds to the Company of approximately\n \n $20,001,000\n \n (the \"\n \n Offering\n \n \").\n \n \n Surge has granted to the Underwriters an option to purchase additional Flow-Through Shares, equal to 15% of the number of Flow-Through Shares sold pursuant to the Offering at the Offering Price, for market stabilization purposes and to cover over-allotments for a period expiring 30 days after the date of closing.\n \n \n Surge will use proceeds from the Offering to incur eligible \"Canadian development expenditures\" within the meaning of the Tax Act in an aggregate amount of not less than the gross proceeds raised from the Offering and will renounce qualifying expenditures to purchasers of the Flow-Through Shares on or before\n \n December 31, 2021\n \n . The proceeds from the Offering will fund an...