Xtreme Coil Announces $50.35 Million Bought Deal OXtreme Coil Announces $50.35 Million Bought Deal Offering
5/11/2011 8:15 AM - CND
CALGARY, May 11, 2011 (Canada NewsWire via COMTEX News Network) --
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE U.S.
(TSX: XDC) - Xtreme Coil Drilling Corp. ("Xtreme Coil" or the "Company") announced that it has entered into an agreement with a syndicate of underwriters led by Peters & Co. Limited, and including Global Hunter Securities, LLC, Cormark Securities Inc. and Canaccord Genuity Corp. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 10,600,000 common shares ("Common Shares") of Xtreme Coil at a price of $4.75 per Common Share for aggregate gross proceeds of $50,350,000. The Underwriters will have the option to purchase up to an additional 15 percent of the total issue of Common Shares, exercisable in whole or in part at the sole discretion of the Underwriters up to 30 days after the closing date, at the same issue price, to cover over allotments, if any. If such option is exercised in full, the aggregate gross proceeds of the offering will be $57,902,500. The Common Shares will be offered in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of a short form prospectus and in the U.S. on a private placement basis pursuant to exemptions from registration requirements.
Net proceeds of the offering will be used initially to reduce indebtedness, and thereafter drawn to partially fund an increased 2011/2012 capital expenditure program (more specifically to construct a minimum of two XDR500 drilling rigs) and for general corporate purposes.
About Xtreme Coil
Xtreme Coil owns and operates a fleet of proprietary, dual-purpose deep capacity drilling rigs featuring the Company's patented COTD® designs. These rigs offer oil and gas companies outstanding performance and efficiency through leading-edge technology for both conventional and coil drilling. Currently, 14 rigs are located in the United States, with drilling operations in Colorado, North Dakota, Texas, Wyoming and Mississippi. Two deep coil service rigs are conducting re-entry horizontal drilling operations in Saudi Arabia. Xtreme Coil is expanding deep coil well servicing operations and has six units undergoing technical upgrades with expected deployment beginning during 2011 fourth quarter. Xtreme Coil's common shares trade on the Toronto Stock Exchange under the symbol "XDC."