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BlackWatch Energy reports USD75m equity finance agreement.

International Resource News-25 August 2009-BlackWatch Energy reports USD75m equity finance agreement(C)2009 ENPublishing - http://www.enpublishing.co.uk

International Resource News - 25 August 2009(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk

Canada-based BlackWatch Energy Services Corporation (Blackwatch)(TSX: BWT), a company that provides diversified energy services primarily in the western Canada sedimentary basin, has entered into an equity financing agreement (the offering) with the intention of raising gross proceeds of USD75m.

The offering is to be on a 'bought deal' basis through which Blackwatch will issue 75 million common shares at a price of USD1.00 per share. The issue is to be underwritten by a syndicate consisting of Cormark Securities Inc, FirstEnergy Capital Corporation and Scotia Capital Inc and led by Peters & Co Limited. If the underwriting syndicate takes up the purchase option of an additional 11.25 million shares after closure of the offering, aggregate gross proceeds of the offering will be USD86.25m.

The offering is subject to usual conditions and approvals and is expected to close on or around September 15, 2009.

Blackwatch intends to use the net proceeds of the offering to fund future acquisitions and capital expenditures, temporarily reduce indebtedness and for general corporate purposes.

[Editorial queries for this story should be sent to irn@enpublishing.co.uk]

((Distributed via M2 Communications - http://www.m2.com))

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Publication:International Resource News (IRN)
Date:Aug 25, 2009
Words:226
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