11:35 AM EDT, 06/20/2024 (MT Newswires) -- Advantage Energy ( AAVVF ) on Thursday said the over-allotment option for its bought-deal financing of 5% convertible debentures was fully exercised by underwriters, bringing in an additional $18.7 million.

The exercise brings the total value of the debenture offering to $143.75 million, the company said, with funds going towards its $450-milion acquisition of oil and gas properties in the Charlie Lake and Montney fields in Western Canada.

RBC Capital Markets on Thursday reiterated its sector-perform rating on Advantage while raising its price target to $12.00 from $11.00 following the acquisition.

The investment bank said the asset buy boosts the company's mix and margin, while also diversifying the portfolio and paving the way for meaningful regional synergies, while noting the company's increased debt levels put the buyback program on hiatus until 2026, when the majority of the upside/free cash flow related to the deal should start to weigh in.

Advantage shares were last seen up $0.13 to $10.45 on the Toronto Stock Exchange.

Price: 10.45, Change: +0.13, Percent Change: +1.26