Terrace Announces $20,000,000 Bought Deal Financing
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, July 3, 2014 /CNW/ - Terrace Energy Corp. (the "Company") (TSXV: TZR, OTCQX: TCRRF; FRANKFURT: 2TR) has entered into an agreement with a syndicate of underwriters, led by Canaccord Genuity, pursuant to which the underwriters have agreed to purchase 10,820,000 common shares on a "bought deal short form prospectus offering" basis, at a price of $1.85 per common share, for aggregate gross proceeds of $20,017,000. The Company has granted the underwriters an over-allotment option to purchase up to an additional 1,623,000 common shares, exercisable at any time up to 30 days from the closing of the Offering, for aggregate gross proceeds of up to an additional $3,002,550.
In consideration of their services in connection with the offering, the underwriters will receive a commission of 6 1/2 % payable in cash upon closing.
The offering is subject to the execution of a definitive underwriting agreement, the receipt of a final short form prospectus no later than July 15, 2014, or such later date mutually agreed upon, and TSX Venture Exchange approval, among other industry standard conditions.
The net proceeds of the offering will be used to fund planned exploration and development activities and for general corporate purposes.
About Terrace Energy
Terrace Energy is an oil & gas development stage company that is focused on unconventional oil & gas extraction in onshore areas of the United States, particularly in South Texas.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available. Any public offering of securities in the United States must be made by means of a prospectus that contains detailed information about the Company and its management, as well as financial statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Terrace Energy Corp.For further information:
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