Paramount Resources Ltd. Announces Equity Offerings
15 Octubre 2009 - 4:06PM
Marketwired Canada
NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES
Paramount Resources Ltd. ("Paramount") (TSX:POU) has entered into an agreement
to sell, to a syndicate of Canadian underwriters led by BMO Capital Markets
4,500,000 common shares at a price of $15.00 per share for gross proceeds of $
67,500,000. Paramount has also granted an option to the underwriters to acquire
an additional 675,000 common shares at the same price. If the option is
exercised in full, the gross proceeds of the issue will be $68,175,000. The
shares will be offered for sale by short form prospectus in Canada in the
provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova
Scotia. Closing of the issue is expected to occur on or about November 4, 2009.
The proceeds from the common share offering will be used to reduce outstanding
indebtedness, to fund ongoing capital expenditures and for general corporate
purposes.
Paramount also intends to issue, by way of private placement in Canada in the
same provinces as for the public share offering, up to 500,000 common shares of
Paramount on a "flow-through" basis at a price of $18.75 per share for gross
proceeds of up to $9,375,000. Paramount has entered into an agreement with the
same syndicate of Canadian underwriters involved in the public share offering
pursuant to which the syndicate will act as agents of Paramount to sell the
offering of flow-through shares on a guaranteed agency basis. This flow-through
share offering is expected to close contemporaneously with the closing of the
common share offering. The proceeds received by Paramount from the sale of these
flow through shares will be used to incur eligible Canadian Exploration Expense.
In conjunction with these offerings, Paramount also intends to issue to Clayton
H. Riddell or companies controlled by Mr. Riddell, Paramount's Chairman and
Chief Executive Officer, 1,000,000 flow-through common shares at a price of
$16.87 per share for gross proceeds of $16,870,000 (which proceeds will be used
by Paramount to incur eligible Canadian Development Expense). Mr. Riddell
currently beneficially owns or controls, directly or indirectly, approximately
50% of Paramount's outstanding common shares.
The completion of each of the equity offerings is subject to Paramount receiving
all necessary regulatory approvals.
This news release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of these securities, in any
jurisdiction in which such offer, solicitation or sale would be unlawful. The
shares of Paramount being offered pursuant to the equity offerings will not be
and have not been registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), and may not be offered or sold within the
United States except in transactions exempt from the registration requirements
of the U.S. Securities Act and applicable state securities laws.
Paramount is a Canadian oil and natural gas exploration, development and
production company with operations focused in Western Canada.
Paramount's common shares are listed on the Toronto Stock Exchange under the
symbol "POU".
Advisory Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. This news release contains forward-looking
statements with respect to the timing and completion of the equity offerings,
the amounts to be raised under the equity offerings and the use of proceeds
therefrom. Although Paramount believes that the expectations reflected in such
forward-looking statements are reasonable, undue reliance should not be placed
on them because we can give no assurance that such expectations will prove to be
correct. Factors that could cause actual results to differ materially from those
set forward in the forward looking statements include general economic, business
and market conditions, industry conditions, stock market and commodity price
volatility, and difficulty in obtaining required regulatory approvals. We
undertake no obligation to update our forward-looking statements except as
required by law.
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