Lonestar West Inc. Announces $10,140,000 "Bought Deal" Financing (ccnm)
SYLVAN LAKE, ALBERTA--(Marketwired - July 19, 2013) -
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Lonestar West Inc. ("Lonestar West" or the "Company") (TSX VENTURE:LSI) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Clarus Securities Inc. and including Industrial Alliance Securities Inc. (collectively, the "Underwriters") to issue, on a bought deal private placement basis, 3,900,000 common shares of the Company at a price of $2.60 per common share, for aggregate gross proceeds of $10,140,000. The Underwriters are entitled to receive a cash fee on the sale of the securities equal to 5% of the aggregate gross proceeds raised in the private placement.
Lonestar West plans to use the net proceeds of this offering for general corporate purposes.
The offering is scheduled to close on or about July 31, 2013, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada, and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Based in Sylvan Lake, Alberta, Lonestar West operates a fleet of 53 HVAC and vacuum trucks throughout Western Canada and recently expanded into California and Oklahoma. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
For more information, please visit the Lonestar West website at www.lonestarwest.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact Information:
Lonestar West Inc.
James Horvath
President and Chief Executive Officer
(403) 887-2074
info@lonestarwest.com
www.lonestarwest.com