November 28, 2011
Blackbird Energy Inc. has closed the first tranche (the "First Tranche") of its brokered private placement previously announced on November 8, 2011 (the "Private Placement") and led by lead agent PI Financial Corp. (the "Agent").
The Company raised gross proceeds of $1,017,500 in the First Tranche through the issuance of a total of 1,730,000 units (each, a "Unit"), at a price of $0.20 per Unit and 3,357,500 flow-through shares (each, a "Flow-Through Share") at a price of $0.20 per Flow-Through Share. Each Unit consists of one common share in the capital of the Company and one common share purchase warrant exercisable at a price of $0.30 until November 25, 2013.
Pursuant to an agency agreement entered into between the Company and the Agent, an aggregate of 305,250 Agent's warrants were issued to the Agent and its selling group, representing 6% of the Units and Flow-Through Shares sold in the First Tranche. In addition, the Agent has also been paid a cash commission of $61,050, representing 6% of the gross proceeds of the First Tranche, and has been granted a right of first refusal to act as financial advisor, agent or underwriter, as applicable, in respect of any corporate transaction, brokered offering to the public or brokered private placement being undertaken by Blackbird within 18 months from the closing of the Private Placement.
In conjunction with the Private Placement, the Company has also closed on non-brokered subscriptions of 62,500 Units and 300,000 Flow-Through Shares for gross proceeds of $72,500.
All of the securities issued pursuant to the Private Placement and any non-brokered subscriptions will be subject to a four month hold period.
The net proceeds from the Private Placement will be applied to the Company's project with Donnybrook Energy Inc. for the lease construction and drilling of the next Montney well at Bigstone. The proceeds from the Flow-Through Shares sold will be used by Blackbird to incur eligible Canadian exploration expenses. The well is estimated to spud prior to year end.
Blackbird currently anticipates the second tranche of the Private Placement to close by mid December.
We seek Safe Harbor.
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