CALGARY, ALBERTA--(Marketwire - May 10, 2012) - Edge Resources Inc. ("Edge" or the "Company") (TSX VENTURE:EDE) is pleased to announce the final closing of the previously announced two-tranche bought-deal financing in the aggregate amount of $4,500,000 at $0.15 per common share (the "Offering") with Henderson Global Investments Limited ("Henderson"), one of the UK's largest global asset management firms.
As approved at the recently held special meeting of the shareholders of the Corporation with 99.6% of the shareholders voting in favor, the scope of the investment ultimately results in Henderson becoming a 28% holder of the issued and outstanding shares of Edge.
Merchant Securities Inc. ("Merchant") of the U.K. received a commission on this final $3,250,000 tranche equal to $81,250 in cash (2.5% of the gross proceeds) and 541,667 common shares (2.5% of the common shares issued). As previously announced, Merchant will continue to assist the Company with its plans to co-list on the Alternative Investment Market (AIM) in London in 2012 and will act as the Company's nominated advisor and broker in the UK.
The net proceeds of the Offering will be used to develop the Company's oil assets with the objective of significantly increasing production and reserves from the Company's recently acquired assets in Primate, Saskatchewan and from the Company's existing oil-producing property in Grand Forks, Alberta.
Brad Nichol, President & CEO of Edge, commented, "This capital injection is very well timed. Capital markets are strained, making it more difficult for our competitors to raise the capital they require to exploit and acquire resources. We will seize this opportunity to focus all of our near-term efforts on the numerous and prolific oil prospects we currently have. We expect to drill several oil wells this summer." Nichol added, "This does not mean that we are abandoning the tremendous natural gas assets we have assembled. We are simply focusing our immediate efforts on generating cash flow and strengthening our balance sheet from the advantages awarded to us from our superb oil assets."
About Edge Resources Inc.
Edge Resources is focused on developing a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. Management has consistently focused on:
- Pools and horizons with exceptionally high reserves in place
- High working interests and fully operated regions
- Shallow, vertical, conventional programs with reduced risk and capital requirements
The management team's very high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, which gives Edge Resources a sustainable, low-cost, competitive advantage.
About Henderson Global Investments Limited
Henderson Global Investors is a leading independent global asset management firm. The company provides its institutional, retail, and high net-worth clients access to skilled investment professionals representing a broad range of asset classes, including equities, fixed income, property and private equity. With its principal place of business in London, Henderson is one of Europe's largest investment managers, with approximately £64.3 billion (CDN$101.3 billion) assets under management.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Trading in the securities of Edge Resources Inc. should be considered highly speculative.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.