Motivational fee structure generates large gross proceeds for Blackbird Energy

, International

Blackbird, an oil and gas exploration and development company, hired Dundee Securities and Haywood Securities to round up the investors.

There’s a new maxim in doing business: when a deal is upsized, the agents’ fees should also be increased.

That’s the situation playing out at Blackbird Energy, which is in the market with a marketed offering of units and flow-through shares. Blackbird, an oil and gas exploration and development company focused on Alberta’s liquids-rich Montney fairway, hired Dundee Securities and Haywood Securities to round up the investors. Later Scotia Capital, Raymond James, Cormark Securities and Mackie Research were added as syndicate members.

On Monday, the plan was to sell 120 million units — with each consisting of a share and a share purchase warrant — at $0.15 a unit. The company also planned to sell 13.4 million flow-through shares, also at $0.15 a share. If successful Blackbird would end up raising $20.010 million. And if the deal received strong enough demand the agents could sell another 18 million units and 2.010 million flow-through shares — meaning a final deal size of $23.011 million.

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