Press release from Marketwire
Contrans Group Inc. Closes $56,225,280 Financing
Wednesday, June 02, 2010
Contrans Group Inc. Closes $56,225,280 Financing08:55 EDT Wednesday, June 02, 2010WOODSTOCK, ONTARIO--(Marketwire - June 2, 2010) - THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREINContrans Group Inc. ("CSS") (TSX:CSS) is pleased to announce that it has closed the previously announced bought deal public offering of its Class A subordinate voting shares (the "Shares") at a price of $9.60 per Share (the "Offering"). The underwriters, co-led by Cormark Securities Inc. and RBC Capital Markets and including BMO Capital Markets, National Bank Financial Inc. and TD Securities Inc. elected to exercise a portion of their over-allotment option on closing of the Offering, resulting in a total of 5,856,800 Shares being issued for gross proceeds to CSS of $56,225,280.The net proceeds from the Offering will be used to fund acquisitions and for general corporate purposes.The Shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. 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.About Contrans Group Inc.Contrans Group Inc. (formerly Contrans Income Fund), a public company listed on the Toronto Stock Exchange, is one of Canada's leading providers of freight transportation services. Contrans' freight transportation business is unique as it can provide flatbed, van, dry tank, liquid tank and dump trailing equipment services as well as third party logistic solutions to shippers throughout Canada and the United States. Contrans has approximately 1,600 employees and owner-operators and its fleet consists of approximately 1,200 tractors and 2,200 trailers.Forward Looking StatementsThis news release contains "forward-looking statements" within the meaning of applicable securities laws, which reflects the expectations of management regarding CSS's use of the net proceeds of the Offering. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "track", "targeted", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. These forward looking statements reflect CSS's current expectations regarding anticipated future events, results, circumstances, performance or expectations, which are not historical facts. Forward looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at which or by the performance or results will be achieved. A number of factors could cause our actual results to differ materially from the results discussed, expressed or implied in any forward-looking statement made by us or on our behalf, including, but not limited to the factors discussed under "Risk Factors" in the short form prospectus of CSS dated May 26, 2010. These forward looking statements are made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.FOR FURTHER INFORMATION PLEASE CONTACT: Contrans Group Inc. Stan G. Dunford Chairman and Chief Executive Officer 519-421-4600 or Contrans Group Inc. Gregory W. Rumble President and Chief Operating Officer 519-421-4600 email@example.com www.contrans.ca The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.