$12 million bought deal ST. ALBERT, AB, March 4, 2014 /CNW/ - Enterprise Group, Inc. ("Enterprise," or the "Company") (TSX:E) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and GMP Securities L.P (collectively the "Underwriters"), to issue, on a bought deal basis, 12,000,000 common shares (the "Common Shares") at a price of $1.00 per Common Share, for aggregate gross proceeds of $12,000,000 (the "Offering").
In addition, the Underwriters have been granted an option (the "Over-Allotment Option") to purchase up to an additional 1,800,000 Common Shares to cover over-allotments, if any, for gross proceeds of $1,800,000. If the Over-Allotment Option is fully exercised, gross proceeds from the Offering will be $13,800,000. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following closing of the Offering.
Enterprise will use the net proceeds from the Offering to expand the Company's capital program, as well as for general corporate purposes.
Closing of the Offering is expected to occur on or about March 25, 2014 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.
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 nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.