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Message: Announces Closing of $46 Million Bought Deal Financing
| April 20, 2009 |
| Pearl Announces Closing of $46 Million Bought Deal Financing |
| CALGARY, ALBERTA--(Marketwire - April 20, 2009) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Pearl Exploration and Production Ltd. ("Pearl" or the "Company") (TSX:PXX)(FIRST NORTH:PXXS) announces the closing of the previously announced offering of 52,334,000 special warrants (including 6,826,000 special warrants issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at a price of $0.88 per special warrant representing total gross proceeds of approximately $46 million on a bought deal basis. The syndicate of underwriters was led by GMP Securities L.P. and includes Canaccord Capital Corporation, RBC Dominion Securities Inc. and Tristone Capital Inc. The Company intends to file a short form prospectus in the provinces of Alberta, British Columbia and Ontario to qualify the distribution of the common shares issuable on the exercise of the special warrants. Each special warrant entitles the holder thereof to receive one common share of the Company on the exercise or deemed exercise of the special warrant. The special warrants will be exercisable by the holder at any time after the closing for no additional consideration and all unexercised special warrants will be deemed to be exercised on the earlier of (a) four months and a day following the closing, and (b) the 5th business day following the date on which a receipt is issued by the securities regulatory authorities in the provinces of Alberta, British Columbia and Ontario for a final short form prospectus qualifying the distribution of the common shares issuable on the exercise of the special warrants. The Company has agreed to use its reasonable best efforts to obtain such receipt by May 7, 2009. Until the receipt is issued for such prospectus, the special warrants as well as the common shares issuable upon exercise thereof will be subject to a four month hold period under applicable Canadian securities laws. The net proceeds of the offering will be used by the Company for general working capital purposes and to fund its capital expenditure program, primarily on its existing properties. |
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