Lonestar West closes $20-million bought-deal financing 2014-06-13 09:07 ET - News Release
Mr. James Horvath reports
LONESTAR CLOSES FINANCING
Lonestar West Inc. has closed its previously announced bought-deal financing of 6,061,000 common shares of the company at a price of $3.30 per common share for aggregate gross proceeds of $20,001,300. The offering was underwritten by a syndicate of underwriters co-led by National Bank Financial Inc. and Clarus Securities Inc., and including Industrial Alliance Securities Inc.
In connection with the offering, the company paid a cash commission of an aggregate of $839,405 to the underwriters. The company intends to use the net proceeds of the offering to purchase additional HVAC and vacuum trucks, to finance strategic acquisitions and for general corporate purposes. The offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.
Certain directors of the company acquired, directly or indirectly, an aggregate of 90,000 common shares in the offering. The participation of such directors in the offering constitutes a related-party transaction pursuant to Multilateral Instrument 61-101. The company is exempt from the formal valuation and minority approval requirements of MI 61-101 in reliance on Section 5.5(b) and Section 5.7(b), respectively, of MI 61-101.
James Horvath, president and chief executive officer, stated, "The closing of this offering provides Lonestar with a strong balance sheet, and allows it to continue its aggressive fleet expansion and acquisition program."
We seek Safe Harbor.
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