December 8, 2011
Blackbird Energy Inc. has raised additional gross proceeds of $658,000 in a combined closing of the second tranche of its previously announced brokered private placement led by lead agent PI Financial Corp. and certain non-brokered subscriptions.
In the brokered Second Tranche, the Company issued a total of 550,000 units (each, a "Unit"), at a price of $0.20 per Unit and 1,865,000 flow-through shares (each, a "Flow-Through Share") at a price of $0.20 per Flow-Through Share, for gross proceeds of $483,000. 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 December 7, 2013. The non-brokered subscriptions consisted of 825,000 Flow-Through Shares and 50,000 Units for gross proceeds of $175,000.
Garth Braun, Blackbird CEO, stated: "We are very pleased to close this second tranche of the Private Placement and now have all of the funds in place to meet our capital requirements for the second Montney well that is currently being drilled."
Pursuant to an agency agreement entered into between the Company and the Agent, an aggregate of 144,900 Agent's warrants were issued to the Agent and its selling group, representing 6% of the Units and Flow-Through Shares sold in the brokered Second Tranche. The Agents' warrants are exercisable at a price of $0.30 until December 7, 2013. The Agent has also been paid a cash commission of $28,980, representing 6% of the gross proceeds of the Second Tranche.
All of the securities issued pursuant to the Private Placement and the non-brokered subscriptions are 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 second Montney well at Bigstone, drilling of which has commenced. The proceeds from the Flow-Through Shares sold will be used by Blackbird to incur eligible Canadian exploration expenses.
Blackbird currently anticipates the third and final tranche of the Private Placement and any additional non-brokered subscriptions to close on or about December 14, 2011.
We seek Safe Harbor.
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