Petrowest Corporation announces $15 million bought deal equity offering
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CALGARY, Oct. 15, 2013 /CNW/ - Petrowest Corporation ("Petrowest" or the
"Company") is pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by Beacon Securities Limited and Canaccord
Genuity Corp. (collectively, the "Underwriters"), which have agreed to
purchase, on a "bought deal" basis 18,750,000 common shares (the "Common
Shares") of the Company at a price of $0.80 per Common Share, for aggregate
gross proceeds of $15 million. The Company has also granted the Underwriters
an over-allotment option, exercisable by the Underwriters in whole or in part
at any time on or up to 30 days after the closing of the offering, to purchase
up to an additional 2,812,500 Common Shares. In the event that the option is
exercised in its entirety, the aggregate gross proceeds of the offering will
be $17.25 million.
The Company plans to use the net proceeds from the offering for repayment of
corporate indebtedness and for general working capital purposes.
"We believe that this offering positions Petrowest for continued growth, both
near term and long term", said President and Chief Executive Officer, Rick
Quigley. "The offering will further strengthen Petrowest's balance sheet,
and provide the Company with working capital to continue to grow its asset
base and pursue attractive projects in Petrowest's target markets."
The offering is scheduled to close on or about November 5, 2013 and is subject
to certain conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock Exchange and
the securities regulatory authorities.
The Common Shares will be offered by way of a short form prospectus to be
filed in certain of the provinces of Canada pursuant to National Instrument
44-101 Short Form Prospectus Distributions and in the United States on a
private placement basis pursuant to an exemption from the registration
requirements of the United States Securities Act of 1933, as amended.
This press release is not an offer or a solicitation of an offer of securities
for sale in the United States. The Common Shares have not been and will not
be registered under the U.S. Securities Act of 1933, as amended, and may not
be offered or sold in the United States absent registration or an applicable
exemption from registration.
Certain of the statements made and information contained herein, including the
use of proceeds, is "forward-looking information" within the meaning of
applicable Canadian securities legislation or "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934 of the United
States. Generally, these forward-looking statements or information can be
identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved". Forward-looking statements are subject to
a variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward-looking statements,
including, without limitation, risks and uncertainties relating to foreign
currency fluctuations; the potential for and effects of labor disputes or
other unanticipated difficulties with or shortages of labour or interruptions
in operations; the inherent uncertainty of operations and cost estimates and
the potential for unexpected costs and expenses, price fluctuations; uncertain
political and economic environments; changes in laws or policies, taxation,
delays or the inability to obtain necessary governmental permits; and other
risks and uncertainties, including those described under risk factors in the
Company's current Annual Information Form and management discussion and
analysis. Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements. The
forward-looking information contained herein is presently for the purpose of
assisting investors in understanding the Company's plans and objectives and
may not be appropriate for other purposes. Accordingly, readers are advised
not to place undue reliance on forward-looking statements.
Petrowest is an Alberta corporation involved in pre-drilling and
post-completion energy services as well as industrial and civil infrastructure
projects, gravel crushing and hauling for non-energy sector customers.
Petrowest's primary operations are based in the Grande Prairie area of
northern Alberta and in northeastern British Columbia.
SOURCE Petrowest Corporation
Richard Quigley, President and Chief Executive Officer, at (780) 830‐0881,
or Ian Hogg, Vice President, Corporate Affairs, at (403) 384-0407, or Lloyd
Wiggins, Chief Financial Officer, at (416) 572-2160, orinfo@petro‐west.com
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CO: Petrowest Corporation
NI: OIL NEWSTK
-0- Oct/15/2013 11:51 GMT
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