Synergy Resources Corporation (“Synergy” or the “Company”) (NYSE MKT: SYRG) today announced that it intends to offer for sale 10,000,000 shares of its common stock in an underwritten public offering. The Company has granted the underwriters an option for 30 days to purchase up to an additional 1,500,000 shares of the Company’s common stock. The underwriters intend to offer the shares of common stock to be sold in the offering from time to time for sale in one or more transactions on the NYSE MKT, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part.
The Company intends to use the net proceeds from this offering for general corporate purposes, which may include continuing to develop its acreage position in the Wattenberg Field in Colorado, repaying amounts borrowed under its revolving credit facility, funding a portion of its capital expenditure program for the remainder of 2016, or other uses. Initially, proceeds will be used to repay amounts borrowed under the revolving credit facility.
Credit Suisse Securities (USA) LLC is acting as lead book-running manager for the offering.
The offering is being made pursuant to an effective shelf registration statement of the Company previously filed with the Securities and Exchange Commission. The offering may be made only by means of a prospectus supplement and the accompanying prospectus. Copies of the preliminary prospectus supplement for the offering and the accompanying prospectus may be obtained by sending a request to: Credit Suisse Securities (USA) LLC, Prospectus Department (1-800-221-1037), One Madison Avenue, New York, New York 10010.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Synergy Resources Corporation
Synergy Resources Corporation is a domestic oil and natural gas exploration and production company. Synergy’s core area of operations is in the Denver-Julesburg Basin, which encompasses Colorado, Wyoming, Kansas, and Nebraska. The company’s corporate offices are located in Denver, Colorado.