CALGARY,
AB, Oct. 3, 2024 /CNW/ - Logan Energy
Corp. (TSXV: LGN) ("Logan" or the "Company") is
pleased to announce the closing of its previously announced upsized
bought-deal private placement financing of 68,494,000 common shares
of Logan ("Common Shares") at a price of $0.73 per Common Share for gross proceeds of
approximately $50.0 million (the
"Equity Offering"), which was led by National Bank
Financial Inc. as sole bookrunner and as co-lead underwriter
together with Eight Capital.
The Company is also pleased to announce the closing of its
previously announced new committed credit facilities in the
aggregate principal amount of $125.0
million from National Bank of Canada, comprised of a $75.0 million revolving committed term credit
facility with an initial tenor of 2.0 years and a $50.0 million delayed draw term facility with a
maximum initial tenor of 2.5 years (together, the "New Credit
Facilities"), which, in aggregate, replaced the Company's
$75.0 million demand credit
facility.
Logan intends to use the net proceeds generated from the Equity
Offering and borrowings available under its New Credit Facilities
to advance its recently announced Duvernay land position and to fund the
accelerated full field development of its Pouce Coupe Montney
assets, including the construction of a 40 mmcf/d gas plant and
associated infrastructure.
The Common Shares issued pursuant to the Equity Offering are
subject to a statutory hold period that extends until February 4, 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 6,849,600 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 and Ante Creek areas. The management team
brings proven leadership and a track record of generating excess
returns in various business cycles.
SOURCE Logan Energy Corp.