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CALGARY, AB, Oct. 21, 2021 /CNW/ - Bonterra Energy Corp.
(www.bonterraenergy.com) (TSX: BNE) ("Bonterra" or the
"Company") is pleased to announce an increase to its
previously announced $5 million
follow on brokered private placement debt financing (the "Follow
On Offering") to an aggregate of $7.5
million of units (the "Units"). Each Unit will
be comprised of one senior unsecured debenture with a face value of
$1,000 (each a "Debenture")
which will bear interest at 9.0% per annum and have a four-year
term plus 56 common share purchase warrants (the
"Warrants"), with each Warrant exercisable to acquire one
common share (a "Common Share") of Bonterra at a price of
$7.75 per Common Share for a period
of four years from October 20,
2021.
Paradigm Capital Inc. and Peters & Co. Limited are acting as
co-lead agents on the Follow-On Offering.
The Company intends to use the net proceeds of the Follow On
Offering primarily to pay down existing bank debt and for general
corporate purposes.
The Units issuable pursuant to the Follow On Offering will be
offered by way of private placement exemptions from the prospectus
requirements under National Instrument 45-106 – Prospectus
Exemptions in each of the provinces in Canada and in the
United States pursuant to exemptions from the registration
requirements of the United States Securities Act of 1933, as
amended, and in accordance with applicable laws and subject to
applicable regulatory hold periods.
About Bonterra
Bonterra Energy Corp. is a conventional oil and gas corporation
with operations in Alberta,
Saskatchewan and British Columbia, focused on its strategy of
long-term, sustainable growth and value creation for shareholders.
The Company's shares are listed on The Toronto Stock Exchange under
the symbol "BNE".
Forward Looking Information
Certain statements contained in this release include statements
which contain words such as "anticipate", "could", "should",
"expect", "seek", "may", "intend", "likely", "will", "believe" and
similar expressions, relating to matters that are not historical
facts, and such statements of our beliefs, intentions and
expectations about development, results and events which will or
may occur in the future, constitute "forward-looking information"
within the meaning of applicable Canadian securities legislation
and are based on certain assumptions and analysis made by us
derived from our experience and perceptions. Forward-looking
information in this release includes, but is not limited to: the
size, and expected use of net proceeds, of the Follow-On
Offering.
All such forward-looking information is based on certain
assumptions and analyses made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are
appropriate in the circumstances. The risks, uncertainties, and
assumptions are difficult to predict and may affect operations, and
may include, without limitation: foreign exchange fluctuations;
equipment and labour shortages and inflationary costs; general
economic conditions; industry conditions; changes in applicable
environmental, taxation and other laws and regulations as well as
how such laws and regulations are interpreted and enforced; the
ability of oil and natural gas companies to raise capital or
maintain its syndicated bank facility; the effect of weather
conditions on operations and facilities; the existence of operating
risks; volatility of oil and natural gas prices; oil and gas
product supply and demand; risks inherent in the ability to
generate sufficient cash flow from operations to meet current and
future obligations; increased competition; stock market volatility;
opportunities available to or pursued by us; and other factors,
many of which are beyond our control.
Actual results, performance or achievements could differ
materially from those expressed in, or implied by, this
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do, what
benefits will be derived there from. Except as required by law,
Bonterra disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise.
The forward-looking information contained herein is expressly
qualified by this cautionary statement.
Numerical Amounts
The reporting and the functional currency of the Company is the
Canadian dollar.
The TSX does not accept responsibility for the accuracy of
this release.
SOURCE Bonterra Energy Corp.
