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THE UNITED STATES/
CALGARY, Feb. 8, 2017 /CNW/ - Hyduke Energy Services Inc.
("Hyduke" or the "Company") (TSX: HYD) is pleased to announce that due to strong demand, the Company has increased the size of
its previously announced private placement of up 33,823,528 common shares (inclusive of the over-allotment option) at a price of
$0.34 per common share for aggregate gross proceeds of approximately $11.5
million to up to 37,647,057 common shares (inclusive of the over-allotment option) for aggregate gross proceeds of
approximately $12,800,000 (the "Private Placement").
Hyduke has entered into an agreement with Lightyear Capital Inc. and PI Financial Corp. (collectively the "Co-Lead
Agents"), to offer the common shares on a commercially reasonable best efforts private placement basis. The Company has also
granted the Co-Lead Agents an option, exercisable in whole or in part, prior to closing of the Private Placement, to purchase up
to an additional 3,823,529 common shares at the Offering Price, which if exercised in full, would increase the gross proceeds by
up to $1,300,000.
This Private Placement remains subject to certain conditions including regulatory approvals and specifically, the approval of
the TSX. The common shares issued in connection with the Private Placement will be subject to a statutory hold period of four
months plus one day from the date of completion of the Private Placement, in accordance with applicable securities
legislation.
This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in
the United States. The common shares have not been and will not be registered under the U.S.
Securities Act of 1933 and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of such Act.
Forward looking information
This news release contains forward-looking information relating to the timing of completion of the Private Placement; the
receipt of all regulatory approvals including that of the TSX; the use of proceeds of the Private Placement; the exercise of the
option granted to the Co-Lead Agents; plans to restructure the Company's business; the potential to undertake acquisitions; and
other statements that are not historical facts. Such forward-looking information is subject to important risks, uncertainties and
assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or
events. As a result, you are cautioned not to place undue reliance on this forward-looking information.
Forward-looking information is based on certain factors and assumptions regarding, among other things, the use of the net
proceeds of the Private Placement will not be subject to change; the timing of closing of the Private Placement; and the timely
receipt of all regulatory and third party approvals for the Private Placement, including those required by the TSX and any
consents required from the Company's lenders to utilize the net proceeds of the Private Placement as desired. While the Company
considers these assumptions to be reasonable based on information currently available to it, they may prove to be
incorrect.
Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual
results to differ materially from what is currently expected. These factors include risks associated with that the Private
Placement may not close when planned (or at all) or on the terms and conditions set forth herein; the failure of the Company to
obtain all necessary regulatory and third party approvals (including the TSX) for the Private Placement; the failure to obtain
the necessary consents and approvals of the Company's lenders; that the Company's budget and plans for the net proceeds from the
Private Placement will be amended in a manner that is different from those set forth herein; that the Company may have trouble
attracting new customers and/or existing customers may have cash constraints; volatility in market prices for oil and natural
gas; and the general economic conditions in Canada.
You should not place undue importance on forward-looking information and should not rely upon this information as of any
other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information
at any particular time, except as required by law.
The TSX has neither reviewed nor approved this release.
SOURCE Hyduke Energy Services Inc.
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