Seymour Schulich is keeping the faith in natural gas play Birchcliff Energy, taking down another $12.4-million of stock in the company on Tuesday as part of a $62-million financing.
Mr. Schulich, a veteran resource company financier, is putting more money into a company that's developing promising but expensive Alberta properties at a time when natural gas prices are relatively soft. He already owns 18 per cent of Birchcliff , and just acquired another 2 million share in the company at $6.20 each.
Birchcliff raised another $49.6-million by selling 8 million shares to the public at the same price. GMP Securities and Scotia Capital led the bought deal, which played out at a 3.9 per cent discount to where the stock was trading on the TSX. This is the latest in a series of equity financings from energy companies, which are getting a second look from investors after a spike in oil prices.
The $62-million stock sale comes a month after Birchcliff boosted its credit facility to $305-million from $240-million. Birchcliff had drawn down $229-million of that facility when it negotiated additional loans.
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