Vero Energy Inc. (TSX:VRO) and TORC Oil & Gas Ltd. announce that TORC has agreed with the underwriters for its bought-deal, private placement announced in connection with the proposed combination of Vero and TORC to increase the size of the offering from 28,850,000 subscription receipts to 30,800,000 subscription receipts at a price of $2.60 per subscription receipt for gross proceeds of $80,080,000 and from 8,065,000 flow-through subscription receipts to 12,910,000 flow-through subscription receipts at a price of $3.10 per flow-through subscription receipt for gross proceeds of $40,021,000.
The subscription receipts and flow-through subscription receipts together, will raise gross proceeds of $120,101,000.
TORC will grant the underwriters an option to purchase from treasury an additional 4,620,000 subscription receipts, on the same terms, exercisable in whole or in part at any time up to 48 hours prior to the transaction closing. Closing of the TORC financing is expected to occur on or about Oct. 4, 2012.
The net proceeds from the subscription receipts will be used to fund ongoing capital expenditures and for general corporate purposes and the proceeds from the flow-through subscription receipts financing will be used to incur Canadian exploration expense for purposes of the Income Tax Act.
The gross proceeds from the TORC Financing will be held in escrow pending the receipt by escrow agent and Macquarie Capital of a joint notice of TORC and Vero that all conditions precedent to the completion of the transaction have been satisfied or waived.