INA - $60-$80MM PP announced.
IONA ENERGY ANNOUNCES FILING OF PRELIMINARY PROSPECTUS FOR AN OFFERING OF A MINIMUM OF CAD$60 MILLION AND A MAXIMUM OF CAD$80 MILLION OF COMMON SHARES
Iona Energy Inc. has filed a preliminary short form prospectus in connection with a public offering of a minimum of $60-million of common shares of the company and a maximum of $80-million of common shares. The offering is led by Casimir Capital Ltd., and includes a syndicate of agents consisting of Clarus Securities Inc., Mackie Research Capital Corp., AltaCorp Capital Inc. and National Bank Financial Inc. Iona has also granted the agents an overallotment option to place, on the same terms and conditions as the offering, up to an additional 15 per cent of the total number of common shares sold in connection with the offering. The option is exercisable, in whole or in part, by the agents at any time up until 30 days after closing of the offering. The offering is being made in each of the provinces of Canada, other than Quebec. Closing of the offering is expected to occur on or about March 27, 2012, and is subject to receipt by the company of credit approval for its syndicated credit facility as further described in the company's news release dated Feb. 28, 2012, and other customary regulatory approvals.
The company has agreed with the agents that the net proceeds of the offering, including any net proceeds received upon the exercise of the overallotment option granted to the agents, will be used by the company to finance the company's development of its Kells oil assets, to acquire the West Wick oil assets, for development engineering of the Orlando oil field, for general and administrative expenses, and for working capital and general corporate purposes.
A preliminary prospectus containing important information relating to the offering has been filed with the securities commissions or similar authorities in each of the provinces of Canada, other than Quebec. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from the agents, care of Casimir Capital Ltd., and are also available electronically on SEDAR. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the (final) prospectus has been issued.
AI
