Terrace Energy arranges $20.01-million financing

2014-07-03 09:27 ET - News Release


An anonymous director reports


Terrace Energy Corp. has entered into an agreement with a syndicate of underwriters, led by Canaccord Genuity, pursuant to which the underwriters have agreed to purchase 10.82 million common shares on a bought deal short form prospectus offering basis, at a price of $1.85 per common share, for gross proceeds of $20,017,000. The company has granted the underwriters an overallotment 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 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 6.5 per cent 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 finance planned exploration and development activities and for general corporate purposes.