Grande West Transportation Group Inc. (Grande West) has announced that it has completed its previously announced bought deal private placement of common shares (the "Offered Shares") of the company, at a price of $1.90 per Offered Share (the "Issue Price") for gross proceeds to the Company of $13,680,000 (the "Offering"). A total of 7,200,000 Offered Shares were sold pursuant to the Offering, including 870,000 Offered Shares issued as a result of the full exercise of the Underwriters' over-allotment option. The Offering was conducted by a syndicate of underwriters led by Beacon Securities Limited and including Echelon Wealth Partners Inc. (collectively, the "Underwriters").
William Trainer, president and CEO of Grande West, stated, "All of us at Grande West would like to thank our new and existing shareholders for making this financing such a success. We are pleased that the market has given us such great support as we move ahead in expanding Grande West's efforts in establishing Vicinity throughout North America. These funds significantly improve the company's financial position and strengthen our balance sheet. We will be using this additional working capital to reduce debt, expand current production capabilities, aggressively grow our US business, and for other general corporate purposes."
All securities issued in connection with the Offering are subject to a hold period which will expire on July 3, 2017, the date that is four months and one day from the closing of the Offering.
The company paid to the Underwriters a cash commission equal to 6 percent of the gross proceeds raised under the Offering. The company also issued to the Underwriters compensation options (the "Compensation Options") equal to 6 percent of the Offered Shares issued pursuant to the Offering. Each Compensation Option is exercisable into one common share of the company at the Issue Price for a period of 18 months from the closing of the Offering.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
The Offered Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
