Finance & Investing | Deals - Acquisition, Mergers, Divestitures | Capital Markets

Tamarack, Sure Complete Merger-Focused $25MM Financing

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Sure Energy Inc. and Tamarack Valley Energy Ltd. have reported that, further to their joint news release on August 20, 2013, Sure Energy has completed a bought deal private placement offering of 96,200,000 subscription receipts at a price of $0.26 per Subscription Receipt, for aggregate gross proceeds of $25,012,000.

The gross proceeds of the Offering will be held in escrow pending satisfaction of certain conditions, including satisfaction of all conditions to the completion of the previously announced plan of arrangement involving Tamarack, 1767001 Alberta Ltd. (a wholly-owned subsidiary of Tamarack), Sure Energy and the shareholders of Sure Energy.

Under the Arrangement, each Subscription Receipt shall, without any further action or payment on the part of the holder thereof, automatically be converted into one common share of Sure Energy which share shall be subsequently cancelled in consideration for 0.105 of a common share of Tamarack. Accordingly, upon completion of the Arrangement, holders of Subscription Receipts will ultimately receive Tamarack Shares.

A syndicate of underwriters led by Dundee Capital Markets and including GMP Securities L.P., National Bank Financial Inc., AltaCorp Capital Inc., Paradigm Capital Inc., Peters & Co. Limited, RBC Dominion Securities Inc. and Acumen Capital Finance Partners Limited acted as underwriters under the Offering.

The net proceeds of the Offering will be used to fund 2013 and 2014 capital expenditures and for general corporate and working capital purposes of pro forma Tamarack, post-closing of the Arrangement.