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Press release from CNW Group

Canyon Services Group Inc. announces closing of $46.8 million bought deal financing

Tuesday, April 06, 2010

Canyon Services Group Inc. announces closing of $46.8 million bought deal financing09:00 EDT Tuesday, April 06, 2010/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/CALGARY, April 6 /CNW/ - Canyon Services Group Inc. ("Canyon" or the "Company") (TSX:FRC) is pleased to announce that it has closed its previously announced bought deal equity financing (the "Offering"). Pursuant to the terms of the Offering, Canyon issued 12,305,000 common shares (the "Common Shares"), which included 1,605,000 Common Shares issued on exercise of the over-allotment option. The Common Shares were issued at a price of $3.80 per Common Share for total gross proceeds of $46,759,000 through a syndicate of underwriters led by Peters & Co. Limited and including Cormark Securities Inc., Raymond James Ltd. and Wellington West Capital Markets Inc.Canyon will use the net proceeds of the Offering to fund the Company's expanded 2010 capital expenditure program which consists primarily of the construction of approximately 50,000 horsepower of additional hydraulic pumping equipment, high rate blending equipment, and sand transportation and storage equipment.ADVISORY: This press release contains forward- looking statements which include statements concerning the anticipated use of the net proceeds of the Offering and expanded capital program. Although Canyon believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Canyon can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the net proceeds of the Offering by Canyon might change if the board of directors of Canyon determines that it would be in the best interests of Canyon to deploy the proceeds for some other purpose.The forward-looking statements contained in this press release are made as of the date hereof and Canyon undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company within the United States. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws. Accordingly, the common shares may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available. << The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release. >> For further information: Brad Fedora, President & CEO, Phone (403) 290-2491; Barry O'Brien, Vice President, Finance & CFO, Phone (403) 290-2478