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CALGARY, AB, Oct. 26, 2021 /CNW/ - Topaz Energy Corp.
(TSX: TPZ) ("Topaz" or the "Company") is pleased to
announce it has completed its previously announced bought-deal
equity financing (the "Equity Financing") of common shares
("Common Shares") and acquisition of a newly-created 5%
gross overriding royalty interest on Whitecap Resources Inc.'s
working interest in the Weyburn Unit for $188.0 million in cash (the "Weyburn Royalty
Acquisition").
Pursuant to the Equity Financing, Topaz issued 10,120,000 Common
Shares, including 1,320,000 Common Shares issued pursuant to the
exercise in full of an over-allotment option granted to the
underwriters. The Common Shares were issued at a price of
$17.10 per Common Share for total
gross proceeds of $173.1 million. The
Equity Financing was made through a syndicate of underwriters
co-led by Peters & Co. Limited and National Bank Financial Inc.
and included BMO Nesbitt Burns Inc., Scotia Capital Inc., RBC
Dominion Securities Inc., ATB Capital Markets Inc., Desjardins
Securities Inc., Raymond James Ltd., Stifel Nicolaus Canada Inc.
and TD Securities Inc.
Concurrent with the closing of the Equity Financing and Weyburn
Royalty Acquisition, certain directors, officers and employees of
the Company and their associates purchased a total of 251,490
Common Shares at a price of $17.10
per Common Share on a private placement basis for gross proceeds of
$4.3 million. The aggregate gross
proceeds from the Equity Financing and concurrent private placement
totalled approximately $177.4
million, with the proceeds used to fund a portion of the
Weyburn Royalty Acquisition purchase price.
ADDITIONAL INFORMATION
Additional information about Topaz, including the financial
statements and management's discussion and analysis for the three
and six months ended June 30, 2021 as
well as the Company's 2020 Annual Information Form are available
electronically under the Company's profile on SEDAR, www.sedar.com,
and on Topaz's website, www.topazenergy.ca.
ABOUT THE COMPANY
Topaz is a unique royalty and energy infrastructure company
focused on generating free cash flow growth and paying reliable and
sustainable dividends to its shareholders, through its strategic
relationship with one of Canada's
largest natural gas producers, Tourmaline Oil Corp., an investment
grade senior Canadian E&P company, and leveraging industry
relationships to execute complementary acquisitions from other
high-quality energy companies, while maintaining its commitment to
environmental, social and governance best practices. For
further information, please visit the Company's website
www.topazenergy.ca.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") that relate to the Company's current expectations and
views of future events. These forward-looking statements relate to
future events or the Company's future performance. Any statements
that express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance
(often, but not always, through the use of words or phrases such as
"will likely result", "are expected to", "expects", "will
continue", "is anticipated", "anticipates", "believes",
"estimated", "intends", "plans", "forecast", "projection",
"strategy", "objective" and "outlook") are not historical facts and
may be forward-looking statements and may involve estimates,
assumptions and uncertainties which could cause actual results or
outcomes to differ materially from those expressed in such forward
looking statements. No assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this news release should not be unduly
relied upon. These statements speak only as of the date of this
news release. In particular and without limitation, this news
release contains forward-looking statements pertaining to the
Company's business as described under the heading "About the
Company" above. Forward-looking information is based on a number of
assumptions including those highlighted in this news release and is
subject to a number of risks and uncertainties, many of which are
beyond the Company's control, which could cause actual results and
events to differ materially from those that are disclosed in or
implied by such forward-looking information. Such risks and
uncertainties include, but are not limited to, the failure to
complete acquisitions on the terms or on the timing announced or at
all and the failure to realize some or all of the anticipated
benefits of acquisitions including estimated royalty production,
royalty production revenue growth, and the factors discussed in the
Company's recently filed Management's Discussion and Analysis (See
"Forward-Looking Statements" therein), Annual Information Form (See
"Risk Factors" and "Forward-Looking Statements" therein) and other
reports on file with applicable securities regulatory authorities
and may be accessed through the SEDAR website (www.sedar.com) or
Topaz's website (www.topazenergy.ca). Topaz does not undertake any
obligation to update such forward-looking information, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
SOURCE Topaz Energy Corp.