Wednesday, May 21, 2008
4.70 is the equity book building price
Questerre Prices Equity Offering
14:26 EDT Wednesday, May 21, 2008
CALGARY, ALBERTA--(Marketwire - May 21, 2008) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) reported it has priced its previously announced equity offering at $4.70 per Common Share.
The Canadian tranche will consist of 7,500,000 shares and will include an over allotment option of 1,125,000 Common Shares. The over allotment option is exercisable within 30 days from the closing of the issue. The placement is subject to receipt of regulatory approval.
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.
FOR FURTHER INFORMATION PLEASE CONTACT:Questerre Energy Corporation
Jason D'Silva
VP Finance
(403) 777-1185
(403) 777-1578 (FAX)
Email: info@questerre.com
Website: www.questerre.com
14:26 EDT Wednesday, May 21, 2008
CALGARY, ALBERTA--(Marketwire - May 21, 2008) - Questerre Energy Corporation ("Questerre" or the "Company") (TSX:QEC) (OSLO:QEC) reported it has priced its previously announced equity offering at $4.70 per Common Share.
The Canadian tranche will consist of 7,500,000 shares and will include an over allotment option of 1,125,000 Common Shares. The over allotment option is exercisable within 30 days from the closing of the issue. The placement is subject to receipt of regulatory approval.
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses, that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein.
FOR FURTHER INFORMATION PLEASE CONTACT:Questerre Energy Corporation
Jason D'Silva
VP Finance
(403) 777-1185
(403) 777-1578 (FAX)
Email: info@questerre.com
Website: www.questerre.com
Word about the financing :
It sold out in 45 minutes!!!!!!!
Claim is that : "This is going higher very soon!"
Questerre Energy Corporation (“Questerre” or the “Company”).
Offering: 7,500,000 Common Shares (the “Shares”).
Issue Size: $35,250,000.
Issue Price: $4.70 per Share.
Drawdown: $4.5825 per Share.
Allocation System Symbol: QEC
Over-Allotment
Option:
Use of Proceeds: The net proceeds of the Shares will be used for the acceleration of the capital program
in Quebec and for general corporate purposes.
Eligibility: The Shares will be eligible under all usual statutes including RRSPs, DPSPs, RESPs,
and RIFs.
Listing: The Shares trade on the Toronto Stock Exchange under the symbol “QEC”.
Form of Offering: Public offering in all provinces of Canada by way of short form prospectus and on
a private placement basis into the United States pursuant to the registration
exemptions provided by Rule 144a and/or Regulation D of the U.S. Securities Act
of 1933.
Form of
Underwriting:
Bought deal, subject to syndication, and an underwriting agreement containing
“disaster out”, “regulatory out”, and “material adverse change out” clauses
running to Closing.
Underwriting Fee: 5%
Closing Date: June 10, 2008
Book Building
About Book Building Book Building is basically a capital issuance process used in Initial Public Offer (IPO) which aids price and demand discovery. It is a process used for marketing a public offer of equity shares of a company. It is a mechanism where, during the period for which the book for the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The process aims at tapping both wholesale and retail investors. The offer/issue price is then determined after the bid closing date based on certain evaluation criteria.
The Process:
The Issuer who is planning an IPO nominates a lead merchant banker as a 'book runner'.
The Issuer specifies the number of securities to be issued and the price band for orders.
The Issuer also appoints syndicate members with whom orders can be placed by the investors.
Investors place their order with a syndicate member who inputs the orders into the 'electronic book'. This process is called 'bidding' and is similar to open auction.
A Book should remain open for a minimum of 5 days.
Bids cannot be entered less than the floor price.
Bids can be revised by the bidder before the issue closes.
On the close of the book building period the 'book runner evaluates the bids on the basis of the evaluation criteria which may include -
Price Aggression
Investor quality
Earliness of bids, etc.
The book runner and the company conclude the final price at which it is willing to issue the stock and allocation of securities.
Generally, the number of shares are fixed, the issue size gets frozen based on the price per share discovered through the book building process.
Allocation of securities is made to the successful bidders.
Book Building is a good concept and represents a capital market which is in the process of maturing.
Initial Public Offerings
Corporates may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. This Initial Public Offering can be made through the fixed price method, book building method or a combination of both. In case the issuer chooses to issue securities through the book building route then as per SEBI guidelines, an issuer company can issue securities in the following manner:
100% of the net offer to the public through the book building route.
75% of the net offer to the public through the book building process and 25% through the fixed price portion.
Under the 90% scheme, this percentage would be 90 and 10 respectively.
It sold out in 45 minutes!!!!!!!
Claim is that : "This is going higher very soon!"
Questerre Energy Corporation (“Questerre” or the “Company”).
Offering: 7,500,000 Common Shares (the “Shares”).
Issue Size: $35,250,000.
Issue Price: $4.70 per Share.
Drawdown: $4.5825 per Share.
Allocation System Symbol: QEC
Over-Allotment
Option:
Use of Proceeds: The net proceeds of the Shares will be used for the acceleration of the capital program
in Quebec and for general corporate purposes.
Eligibility: The Shares will be eligible under all usual statutes including RRSPs, DPSPs, RESPs,
and RIFs.
Listing: The Shares trade on the Toronto Stock Exchange under the symbol “QEC”.
Form of Offering: Public offering in all provinces of Canada by way of short form prospectus and on
a private placement basis into the United States pursuant to the registration
exemptions provided by Rule 144a and/or Regulation D of the U.S. Securities Act
of 1933.
Form of
Underwriting:
Bought deal, subject to syndication, and an underwriting agreement containing
“disaster out”, “regulatory out”, and “material adverse change out” clauses
running to Closing.
Underwriting Fee: 5%
Closing Date: June 10, 2008
Book Building
About Book Building Book Building is basically a capital issuance process used in Initial Public Offer (IPO) which aids price and demand discovery. It is a process used for marketing a public offer of equity shares of a company. It is a mechanism where, during the period for which the book for the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The process aims at tapping both wholesale and retail investors. The offer/issue price is then determined after the bid closing date based on certain evaluation criteria.
The Process:
The Issuer who is planning an IPO nominates a lead merchant banker as a 'book runner'.
The Issuer specifies the number of securities to be issued and the price band for orders.
The Issuer also appoints syndicate members with whom orders can be placed by the investors.
Investors place their order with a syndicate member who inputs the orders into the 'electronic book'. This process is called 'bidding' and is similar to open auction.
A Book should remain open for a minimum of 5 days.
Bids cannot be entered less than the floor price.
Bids can be revised by the bidder before the issue closes.
On the close of the book building period the 'book runner evaluates the bids on the basis of the evaluation criteria which may include -
Price Aggression
Investor quality
Earliness of bids, etc.
The book runner and the company conclude the final price at which it is willing to issue the stock and allocation of securities.
Generally, the number of shares are fixed, the issue size gets frozen based on the price per share discovered through the book building process.
Allocation of securities is made to the successful bidders.
Book Building is a good concept and represents a capital market which is in the process of maturing.
Initial Public Offerings
Corporates may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. This Initial Public Offering can be made through the fixed price method, book building method or a combination of both. In case the issuer chooses to issue securities through the book building route then as per SEBI guidelines, an issuer company can issue securities in the following manner:
100% of the net offer to the public through the book building route.
75% of the net offer to the public through the book building process and 25% through the fixed price portion.
Under the 90% scheme, this percentage would be 90 and 10 respectively.
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