Whitecap Resources Inc.

Whitecap Resources Inc.

April 20, 2011 18:41 ET

Whitecap Resources Inc. Closes Acquisition of Spry Energy Ltd.

CALGARY, ALBERTA--(Marketwire - April 20, 2011) - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX:WCP) is pleased to announce that it successfully closed the previously announced plan of arrangement (the "Arrangement") with Spry Energy Ltd. ("Spry"). Pursuant to the Arrangement, Whitecap acquired all of the issued and outstanding common shares of Spry for $130,898,000 in cash and the issuance of an aggregate of 8,228,023 common shares ("Common Shares") of Whitecap. Whitecap also assumed the debt and working capital of Spry, estimated at $36.0 million as at March 1, 2011.

Whitecap is also pleased to announce that following the completion of the Arrangement, Mr. Donald Cowie joined the Whitecap board of directors.

The Arrangement was partially funded through a subscription receipt bought deal public financing (the "Offering") through a syndicate of underwriters co-led by GMP Securities L.P. and National Bank Financial Inc., and including FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd., Casimir Capital Ltd., Cormark Securities Inc., Haywood Securities Inc. and Peters & Co. Limited (the "Underwriters"). Pursuant to the Offering, Whitecap issued 22,000,000 subscription receipts at $6.80 per subscription receipt (including 2,000,000 subscription receipts issued pursuant to the exercise by the Underwriters of their over‐allotment option) for gross proceeds of $149.6 million. With the closing of the Arrangement, trading in the subscription receipts will be halted at the open of markets on Thursday, April 21, 2011 and will remain halted until the close of business that day, at which time the subscription receipts will be de-listed. In accordance with their terms, each subscription receipt was deemed to have been exchanged for one Common Share upon the closing of the Arrangement and the proceeds of the Offering were released from escrow.

Contact Information

  • Whitecap Resources Inc.
    Grant Fagerheim
    President & CEO
    (403) 266-0767

    Whitecap Resources Inc.
    Thanh Kang
    VP Finance and CFO
    (403) 266-0767
    (403) 266-6975

    Whitecap Resources Inc.
    500, 222 - 3 Avenue SW
    Calgary, AB, T2P 0B4