Surge Energy Inc. is pleased to announce the closing of the previously announced upsized, bought-deal equity financing (the "Financing") of 7,568,000 common shares of Surge ("Common Shares") at a price of $9.25 per Common Share, for gross proceeds of approximately $70.0 million.
The Company has also granted to the Underwriters an over-allotment option to purchase 1,135,200 additional Common Shares, representing 15% of the size of the Financing. The over-allotment option may be exercised until 30 days following the closing of the Financing.
The net proceeds from the Financing are expected to be used to partially fund the previously announced acquisition of core area assets from Enerplus Canada. The Financing was underwritten by a syndicate led by National Bank Financial Inc. and Peters & Co. Limited (together with the syndicate members the "Underwriters").
