August 17, 2010
APO Energy Inc. (“APO”), a private Ontario company engaged in oil and gas exploration and development in Colombia, completed a brokered private placement of an aggregate principal amount of US$44,820,000 secured subordinated convertible debentures and 5,345,000 common shares issued at a price of US$1.25 per share, for aggregate gross proceeds of US$51,501,250. The debentures are convertible into common shares at a price of US$1.50 per common share, subject to a penalty provision and customary adjustments. Canaccord Genuity Corp. led the syndicate of agents, which also included GMP Securities L.P. and PI Financial Corp.
The brokered private placement is in addition to three prior rounds of non-brokered private placement financings of APO, pursuant to which APO placed an aggregate of 51,654,558 common shares for aggregate proceeds of approximately US$49,000,000.
The funds raised through the brokered and non-brokered private placements were applied principally to fund two significant acquisitions by APO of oil and gas assets in Colombia, which acquisition were completed on June 23, 2010 and July 5, 2010, respectively, and for other acquisitions of oil and gas assets in Colombia and working capital purposes.
Wildeboer Dellelce LLP acted for APO for the brokered private placement, the non-brokered private placements and the acquisitions of oil and gas assets, with a team that included Perry Dellelce, Charlie Malone, Peter Simeon, Nicholas Dobbek, Mack Hosseinian, Colin Grosskurth (corporate/ securities), Christopher Partridge (debt products) and Kevin Fritz (tax).