SPI announces bought deal

Canadian Spirit Resources Inc. (SPI) announced that it has filed an amended public ofering of 16.7M shares at a bought deal price of $1.50/share. This deal will provide the company with the necessary capital to fund their share of the Montney project for 2011. This offering basically commits the underwriters to place the 16.7M shares at their risk as opposed to the previous offering which placed the risk with SPI. This deal demonstrates the confidence that the underwriters have in the company and their ability to place the shares. It is also significant that this offering does not include the incentive of warrants. It will be a positive sign for SPI should this offering now close as scheduled.

The placement will be led by Wellington West and will include Casimir Capital, Byron Securities and Acumen Capital. It's worth noting that Salman Partners is not included in this placement. Recent trading indicates that Wellington West and Byron Securities have been active supporters while Salman Partners has not shown much participation. It's possible that this is a factor.