Copyright of the Daily Oil Bulletin 2017
Aveda Transportation Announces Upsizing, Pricing Of Public Offering
Aveda Transportation and Energy Services Inc. says it has priced its previously announced public of common shares of the company and increased the offering for gross proceeds of up to $25 million from the initial $10 million.
Pursuant to the offering, Aveda, a leading provider of oilfield hauling services and equipment rentals to the energy industry, has engaged a syndicate of agents, co-led by Beacon Securities Limited and Canaccord Genuity Corp., to sell a minimum of 33.334 million common shares and a maximum of 41.667 million common shares at a price of C60 cents per common share for aggregate gross proceeds to the company of a minimum of $20 million and a maximum of $25 million. The consortium also includes PI Financial Corp. and Mackie Research Capital Corporation.
The shares will be sold in the provinces of British Columbia, Alberta, Manitoba and Ontario.
Aveda has also granted the agents an over-allotment option, exercisable, in whole or in part, at any time in the 30-day period following the closing of the offering, to sell up to an additional 15 per cent of the number of common shares sold pursuant to the offering at the offering price to cover over-allotments, if any, and for market stabilization purposes.
The company has received a receipt from the Alberta Securities Commission for the preliminary short form prospectus filed in connection with the offering, dated Jan. 17, 2017, which is available on SEDAR. Aveda will file a final short form prospectus in connection with the offering in each of the offering jurisdictions.
The offering is expected to close on or about Feb. 16, 2017 and is subject to customary closing conditions, including obtaining the approval of the TSX Venture Exchange and receipts from applicable securities regulatory authorities for the final short form prospectus.
The net proceeds of the offering will be used for debt reduction, enhanced working capital and general corporate purposes.
Werklund Capital Corporation and Werklund Ventures Ltd. (WCC), Aveda's largest shareholders holding approximately 40 per cent of the company, have committed to subscribe for up to $5 million of the offering on the same terms and conditions as public investors, subject to regulatory, shareholder and TSX Venture Exchange approval (DOB, Jan. 17, 2017). Senior executives of Aveda are also anticipated to participate in the offering.