Lonestar Closes Financing
June 13 2014 - 8:00AM
Marketwired
Lonestar Closes Financing
SYLVAN LAKE, ALBERTA--(Marketwired - Jun 13, 2014) - Lonestar
West Inc. (TSX-VENTURE:LSI) ("Lonestar" or the "Company") is
pleased to announce that it has closed its previously announced
bought deal financing (the "Offering") of 6,061,000 common shares
("Common Shares") of the Company at a price of $3.30 per Common
Share for aggregate gross proceeds of $20,001,300. The Offering was
underwritten by a syndicate of underwriters co-led by National Bank
Financial Inc. and Clarus Securities Inc. and including Industrial
Alliance Securities Inc. (collectively, the "Underwriters").
In connection with the Offering, the Company paid a cash
commission of an aggregate of $839,405 to the Underwriters. The
Company intends to use the net proceeds of the Offering to purchase
additional HVAC and vacuum trucks, to finance strategic
acquisitions and for general corporate purposes. The Offering is
subject to TSX Venture Exchange acceptance of requisite regulatory
filings.
Certain directors of the Company acquired, directly or
indirectly, an aggregate of 90,000 Common Shares in the Offering.
The participation of such directors in the Offering constitutes a
related party transaction pursuant to Multilateral Instrument
61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company is exempt from the
formal valuation and minority approval requirements of MI 61-101 in
reliance on Sections 5.5(b) and Sections 5.7(b), respectively, of
MI 61-101.
James Horvath, President and CEO, stated "The closing of this
Offering provides Lonestar with a strong balance sheet and allows
it to continue its aggressive fleet expansion and acquisition
program."
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar (www.lonestarwest.com)
operates a fleet of 91 HVAC and vacuum trucks throughout Western
Canada and the United States. It is focused on profitably growing
its HVAC services to become a major competitor in the North
American market.
For more information please visit the Lonestar website at
www.lonestarwest.com.
NEITHER THE TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX-VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Forward Looking
Information
Certain statements contained in this news release constitute
forward-looking information. These statements relate to future
events or the Company's future performance. The use of any of the
words "could", "expect", "intend", "believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on the Company's current
belief or assumptions as to the outcome and timing of such future
events. In particular, forward-looking statements contained in this
press release include, but are not limited to the anticipated use
of net proceeds of the Offering. These forward-looking statements
are based on assumptions and are subject to numerous risks and
uncertainties, certain of which are beyond the Company's control,
including the impact of general economic conditions, industry
conditions, volatility of commodity prices, competition, stock
market volatility and the ability to access sufficient capital.
Actual future results may differ materially. The Company's
short-form prospectus filed in connection with the Offering and
other documents filed with securities regulatory authorities
(accessible through the SEDAR website www.sedar.com) describe the
risks, material assumptions and other factors that could influence
actual results and which are incorporated herein by reference. The
Company disclaims any intention or obligation to publicly update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities laws.
Lonestar West Inc.James HorvathPresident &
CEO403-887-2074info@lonestarwest.comwww.lonestarwest.comThe Howard
Group Inc.Investor RelationsJeff Walker(888) 221-0915 or (403)
221-0915jeff@howardgroupinc.com
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