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Press release from Marketwire

Element Financial Announces Increase of Previously Announced Equity Financing to $87 Million

Tuesday, May 15, 2012

Element Financial Announces Increase of Previously Announced Equity Financing to $87 Million10:41 EDT Tuesday, May 15, 2012TORONTO, ONTARIO--(Marketwire - May 15, 2012) -NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES.This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.Element Financial Corporation (TSX:EFN) ("Element") is pleased to announce that it has amended the terms of its previously announced private placement bought deal offering of special warrants of Element ("Special Warrants") to increase the size of the offering to approximately $87 million (the "Offering"). Under the amended terms of the Offering, a syndicate of underwriters co-led by GMP Securities L.P, Barclays Capital Canada Inc. and BMO Capital Markets acting as Joint Bookrunners, and including RBC Capital Markets, CIBC World Markets Inc. and Scotia Capital Inc. (collectively, the "Underwriters") have agreed to purchase, on a bought deal private placement basis, an aggregate of 16,595,900 Special Warrants at a price of $5.25 per Special Warrant for gross proceeds of approximately $87 million. Each Special Warrant will be exercisable into one common share in the capital of Element (the "Common Shares") for no additional consideration. The Special Warrants will be deemed to be exercised upon the earlier of: (i) the fifth business day after the date of issuance of a receipt for a final prospectus qualifying the issuance of Common Shares underlying the Special Warrants, and (ii) four months and one day following the closing of the Offering. Element has agreed to use commercially reasonable efforts to file a prospectus qualifying the issuance of the Common Shares underlying the Special Warrants within 75 days of closing of the Offering. The proceeds of the Offering will be used to fund Element's future growth and for general corporate purposes. The Offering is scheduled to close on May 31, 2012, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange. About Element Financial CorporationElement Financial Corporation is an independent finance company that originates, manages and funds equipment leases. Element Financial Corporation operates in two specific segments of the equipment finance market through Element Capital, a business unit operating in the large ticket equipment leasing and Element Finance that, currently originates equipment finance assets within specific segments of the mid-ticket equipment finance market through its four specialized groups: manufacturing and industrial, transportation and construction, healthcare and golf equipment, each of which has national scope and coverage. Forward Looking StatementsThis release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release, including the timing and expected completion of the Offering; the intention of Element to file a prospectus qualifying the Common Shares issuable pursuant to the Special Warrants and the intended use of proceeds from the Offering, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the equipment finance industry, economic factors and the equity markets generally and many other factors beyond the control of Element. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes 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: Gabrielle ColluMedia Contact:(514) 943-6557gcollu@bcp.caOR(416) 342-1836Patrick GossagePatrick.Gossage@mediaprofile.comORJim MoreInvestor Contact:Senior Executive Vice President(416) 386-1067 ext. 219jmore@elementfinancial.ca