-- Condor Energies (CDR.TO) late on Monday said it has entered into an agreement with underwriters for the sale of 5.8 million of its common shares on a "bought deal" basis for gross proceeds of up to C$15 million.
Under the agreement with Canaccord Genuity and Research Capital as co-lead underwriters and joint bookrunners, the common shares will be acquired at a price of $2.60 apiece with an option to purchase up to an additional 865,500 common shares at the offering price.
The overallotment option is exercisable for a period of 30 days after and including the closing date. If exercised in full, the overallotment option would result in additional gross proceeds of about $2.3 million.
Net proceeds will be used to continue development of Condor's natural gas fields in Uzbekistan, including enhancing field compression, and general corporate purposes.
The offering is scheduled to close on April 21, or at a later date as determined by the underwriters and the company, subject to certain conditions including regulatory approvals and the approval of the Toronto Stock Exchange.
The company has agreed to pay to the underwriters a cash commission equal to 6% of the gross proceeds of the offering.