CALGARY, ALBERTA--(Marketwired - July 18, 2013) -
NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION TO U.S. RESIDENTS
Canadian Energy Services & Technology Corp. ("CESTC") (CEU.TO)(CESDF) is pleased to announce that it has entered into an agreement to sell, on a bought deal basis, to a syndicate of underwriters, 2,110,000 common shares at $16.60 per common share for gross proceeds of approximately $35.0 million. The syndicate of underwriters is led by Stifel Nicolaus Canada Inc. and includes Clarus Securities Inc., Scotiabank, RBC Dominion Securities Inc., AltaCorp Capital Inc., Cormark Securities Inc., FirstEnergy Capital Corp. and HSBC Securities (Canada) Inc.
The net proceeds of the offering are expected to be used to partially repay outstanding indebtedness under CESTC's senior credit facility and for general corporate purposes.
The financing will be offered in all provinces of Canada except Québec and certain other jurisdictions outside Canada, and is expected to close on or about August 8, 2013 subject to satisfaction of certain customary conditions, including regulatory and stock exchange approvals.
In addition, CESTC is pleased to announce that it will pay a cash dividend of $0.055 per common share on August 15, 2013 to the shareholders of record at the close of business on July 31, 2013.
The securities offered 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 applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares, nor shall there be any offer or sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Canadian Energy Services & Technology Corp.
CESTC's business is focused on the design and delivery of technically advanced fluids for the North American oil and gas industry. CESTC's business model requires limited re-investment capital to grow. As a result, CES has been able to capitalize on the growing market demand for drilling and production fluids in North America while generating free cash flow. CES returns much of this free cash flow back to shareholders through its monthly dividend. Additional information about CES is available at www.sedar.com or at CESTC's website at www.CanadianEnergyServices.com.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains forward-looking statements within the meaning of applicable securities laws. In particular, this news release contains forward-looking statements with respect to the timing and completion of the proposed offering of common shares and the use of proceeds from the offering. Although CES believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on them because CES can give no assurance that such expectations will prove to be correct. Assumptions have been made with respect to, among other things, general economic and market conditions. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include, among other things, general economic and market conditions, industry conditions, market and commodity price volatility and CESTC's financial and operational performance and results. CES disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.