EQU: TSX, NYSE
CALGARY, AB, April 26, 2011 /CNW/ - Equal Energy Ltd. ("Equal" or the
"Company") is pleased to announce that it has entered into an agreement
with a syndicate of underwriters (the "Underwriters") led by Scotia
Capital Inc. pursuant to which the Underwriters have agreed to
purchase, on a bought deal basis, 6,850,000 common shares (the "Common
Shares") at a price of $7.35 (the "Issue Price") per Common Share for
gross proceeds of $50,347,500 ("Offering"). Equal has also granted the
Underwriters an over-allotment option to purchase up to an additional
685,000 Common Shares, at the same price, exercisable in whole or part
at closing or until 30 days following closing of the Offering. Net
proceeds of the Offering will be used to fund the previously announced
acquisition of certain oil and gas interests in the Hunton play in
Oklahoma (the "Acquisition").
The Common Shares shall be offered in all provinces of Canada by way of
a short form prospectus, and in other jurisdictions pursuant to
applicable exemptions from registration and prospectus requirements,
including, without limitation, in the United States on a private
placement basis. Closing of the Offering is expected to occur on May
19, 2011 and is subject to certain conditions including, without
limitation, the approval of the Toronto Stock Exchange and the receipt
of necessary regulatory approvals.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of
Equal in any jurisdiction in which such offer, solicitation or sale
would be unlawful. The securities referred to herein have not been and
will not be registered under the United States Securities Act of 1933,
as amended, or any state securities laws and may not be offered or sold
within the United States or to or for the account or benefit of a U.S.
Person absent registration or an applicable exemption from the
registration requirements of such Act or laws.
Certain information in this press release constitutes forward-looking
statements under applicable securities law. Any statements that are
contained in this press release that are not statements of historical
fact may be deemed to be forward-looking statements. Forward-looking
statements are often identified by terms such as "may," "should,"
"anticipate," "expects," "seeks" and similar expressions. Specific
forward-looking statements included in this press release include
comments related to the anticipated amount and use of net proceeds of
the Offering and the expected closing date of the Offering.
Forward-looking statements necessarily involve known and unknown risks,
including, without limitation, uncertainty regarding the completion of
the Acquisition and the ability to access sufficient capital from
internal and external sources. Readers are cautioned that the
foregoing list of factors is not exhaustive.
Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such information,
although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ
materially from those anticipated Forward-looking statements contained
in this press release are expressly qualified by this cautionary
Additional information on these and other factors that could affect
Equal's operations or financial results are included in Equal's reports
on file with Canadian and U.S. securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com), the SEC's website (www.sec.gov), Equal's website (www.equalenergy.ca) or by contacting Equal. Furthermore, the forward looking statements
contained in this news release are made as of the date of this news
release, and Equal does not undertake any obligation to update publicly
or to revise any of the included forward-looking statements, whether as
a result of new information, future events or otherwise, except as
expressly required by securities law.
SOURCE Equal Energy Ltd.
For further information:
| Dell Chapman |
Chief Financial Officer
(403) 538-3580 or (877) 263-0262
| || || || || || || || || Don Klapko |
President & CEO
(403) 536-8373 or (877) 263-0262