American Eagle Energy Corp. (OTC: AMZG) priced the sale of some 13.7 million shares of its common stock to the public at $1.70 per share for gross proceeds of $23.3 million.
The company granted the underwriters a 30-day over-allotment option to purchase up to some 2.1 million additional shares. The offering is expected to settle on Oct. 7, subject to the satisfaction of customary closing conditions. Upon closing, the resulting net proceeds to the company, after deducting underwriting discounts, commissions and other expenses, are expected to be $21.5 million.
Net proceeds will be used to fund the first half of its acquisition of oil and gas assets and its capital budget for the balance of 2013. Any remaining net proceeds will be used for general corporate purposes, including working capital.
Northland Capital Markets and Euro Pacific Capital Inc. are joint book-running managers. KLR Group LLC is co-manager. 'Northland Capital Markets' is the trade name for certain capital markets and investment banking services of Northland Securities Inc., member FINRA/SIPC.
The underwritten public offering is being made pursuant to an effective registration statement previously filed by the company with the Securities and Exchange Commission. A prospectus supplement and accompanying base prospectus have been filed with the Securities and Exchange Commission.
American Eagle Energy Corp. is an independent energy company engaged in the acquisition, exploration, development, and production of oil and gas properties in Canada and the U.S. The company is based in Denver.