CALGARY - Cequence Energy Inc. (TSX:CQE) says it's in the final stages of arranging a $60-million investment from an arm of the Canada Pension Plan Investment Board.
The oil and gas company said proceeds from the financing, expected to close Thursday, will be used to speed development of its Simonette project in the Montney formation.
CPPIB Credit Investments Inc. will acquire $60 million in unsecured five-year notes that will pay nine per cent annual interest and three million share purchase warrants.
The warrants, which expire Oct. 3, 2020, allow CPPIB to buy shares of Cequence at $2.03 each. The shares closed Wednesday at $1.55, prior to the announcement.
Cequence said CPPIB Credit will also be able to buy an addition $60 million of five-year notes at a later time.