Canadian Phoenix Resources Corp. and Renegade Petroleum Ltd. have completed two related financings totalling about $185 million as part of plans to build Renegade's presence in southeastern Saskatchewan.
The fundraising is part of Renegade's plan to pay about $405 million to acquire strategic assets within its core area in southeast Saskatchewan.
The assets, to be acquired from an unidentified Canadian senior producer, have about 3,600 barrels per day of light oil output. That will almost equal Renegade's third-quarter daily production, which was about 3,923 barrels per day.
Renegade said Friday that it had completed its portion of the financing by selling $70.7 million of subscription receipts to a syndicate of underwriters, as contemplated in an Oct. 29 announcement..
It will also receive $75 million through a deal with Canadian Phoenix, which has completed a separate $114.2-million private placement of equity in a new company, called Canadian Phoenix Acquisition Corp. (CPAC).
As part of the deal between the two companies, Canadian Phoenix will put $75 million of cash into CPAC and sell it to Renegade. Canadian Phoenix shareholders will receive about 35 million Renegade shares in return.
Renegade has said it expects to borrow the remaining funds required to acquire the producing assets from a syndicate of banks.
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