CALGARY,
AB, Dec. 17, 2024 /CNW/ - Logan Energy
Corp. (TSXV: LGN) ("Logan" or the "Company")
is pleased to announce the closing of its previously announced
acquisition of an operated 50% working interest in certain assets
located in the Company's core area at Simonette, Alberta, and a 100% interest in certain
Simonette gross overriding royalties, for a cash purchase price of
$52.0 million, before closing
adjustments (the "Acquisition"). For further details on the
Acquisition, see Logan's press release dated November 26, 2024.
Logan is also pleased to announce the closing of the previously
announced upsized bought-deal private placement financing of
61,644,000 common shares of Logan ("Common Shares") at a
price of $0.73 per Common Share for
gross proceeds of approximately $45.0
million (the "Equity Offering"), which was led by
National Bank Financial Inc. and Eight Capital as joint bookrunners
and co-lead underwriters. Logan used the net proceeds from the
Equity Offering to repay indebtedness incurred to fund a portion of
the purchase price for the Acquisition.
The Common Shares issued pursuant to the Equity Offering are
subject to a statutory hold period that
extends until April 18,
2025 and all Common Shares issued in the United States
are subject to a 1 year hold period,
subject to the ability to resell the Common Shares on the TSX
Venture Exchange ("TSXV") prior to 1 year in accordance with
U.S. securities laws.
Certain directors and officers of the Company
participated in the Equity Offering under the president's list for
an aggregate subscription of 3,109,200 Common Shares, which is
considered a "related party transaction" pursuant to Multilateral
Instrument 61-101 – Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). The Company is relying
on exemptions from the formal valuation and minority shareholder
approval requirements provided under sections 5.5(a) and
5.7(1)(a) of MI 61-101 on the basis that the fair market value of
the aggregate participation of the insiders in the Equity Offering
does not exceed 25% of the market capitalization of the Company, as
determined in accordance with MI 61-101.
The Equity Offering has been conditionally accepted by the TSXV
and remains subject to the final acceptance of the TSXV.
ABOUT LOGAN ENERGY CORP.
Logan is a growth-oriented exploration, development and
production company formed through the spin-out of the early stage
Montney assets of Spartan Delta
Corp. Logan was founded with a strong initial capitalization and
three high quality and opportunity rich Montney assets located in the Simonette and
Pouce Coupe areas of northwest
Alberta and the Flatrock area of northeastern British Columbia and has recently established
a position within the greater Kaybob Duvernay oil play with assets
in the North Simonette, Ante Creek and Two Creeks areas. The
management team brings proven leadership and a track record of
generating excess returns in various business cycles.
Neither 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 news release.
SOURCE Logan Energy Corp.
