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Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) (TSX: HNL.TO) announced today the closing of its previously announced bought-deal financing through a syndicate of underwriters led by National Bank Financial Inc. and including Scotia Capital Inc., Peters & Co. Limited, TD Securities Inc., Cormark Securities Inc., GMP Securities L.P., Beacon Securities Limited, Clarus Securities Inc., Raymond James Ltd., Canaccord Genuity Corp., Acumen Capital Finance Partners Limited and AltaCorp Capital Inc. (the “Offering”). Pursuant to the Offering, the Corporation issued 17,857,200 common shares (“Common Shares”) at a price of $2.80 per Common Share for gross proceeds of approximately $50 million.
The net proceeds received by Horizon North from the Offering will be used to initially reduce the Corporation’s committed credit facility balances, which will then be available to take advantage of opportunities associated with new Liquefied Natural Gas (“LNG”) projects in western Canada, and to expand the Corporation’s Modular Solutions business across Canada. Horizon North specifically intends to allocate the net proceeds of the Offering as follows: (i) approximately 50 per cent of the net proceeds are to be directed towards the transportation, installation and commissioning of up to 1,000 camp beds on Horizon North’s existing, fully serviced land position in Kitimat, British Columbia following a potential positive final investment decision by LNG project proponents; and (ii) approximately 50 per cent of the net proceeds are to be directed towards the expansion of Horizon North’s Modular Solutions capabilities, including within existing geographies in western Canada and potentially new geographies in eastern Canada.
Please see the “Use of Proceeds” in the Short Form Prospectus of the Corporation dated June 18, 2018 for further details on the use of net proceeds from the Offering, a copy of which is available under the Corporation’s profile on www.sedar.com.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being 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 pursuant to applicable exemption from registration.
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Construction division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.