Canadian Oilfield Solutions Corp.

TSX VENTURE : OTS


Canadian Oilfield Solutions Corp.

March 03, 2014 23:59 ET

Canadian Oilfield Solutions Corp.: Closing of Third and Final Tranche of Debenture Financing

CALGARY, ALBERTA--(Marketwired - March 3, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Canadian Oilfield Solutions Corp. (the "Corporation") (TSX VENTURE:OTS) announces that it has completed the third and final closing of its offering (the "Offering") of units ("Units"). The Offering was led, on a commercially reasonable efforts basis, by Wolverton Securities Ltd. ("Wolverton").

The Corporation previously announced on February 3, 2014 that it had closed the final tranche of the Offering; however, the Corporation issued today an additional 597 Units pursuant to the exercise of an over-allotment option granted by the Corporation to Wolverton, for gross proceeds of $597,000. Each Unit consists of (i) $1,000 principal amount of non-convertible secured non-transferable subordinated debentures ("Debentures") and (ii) 500 non-transferable share purchase warrants ("Warrants"). The Debentures mature on December 31, 2014 and bear interest at 10% per annum payable quarterly in arrears, and the Corporation may redeem the Debentures prior to their maturity date without penalty. Each Warrant entitles the purchaser to acquire one common share of the Corporation for a period of 24 months from the date of closing of the Offering at an exercise price of $0.30 per share.

The Offering has now been fully subscribed, as the Corporation has issued an aggregate of 5,750 Units under the Offering, for aggregate gross proceeds of $5,750,000, which, after deducting agency commissions and legal fees, will result in net proceeds to the Corporation of approximately $5,315,000. Net proceeds from the Offering will primarily be used to repay debt and for working capital for the Corporation's Mexican operations.

Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an array of specialized products and services that are used in the production of oil and gas reserves.

This press release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The Units may be offered or sold in other eligible foreign jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the terms of the Offering and the expected use of proceeds therefrom. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by the Corporation, including, without limitation, expectations and assumptions concerning the success of future operating activities. Although the Corporation believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Corporation can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general, uncertainty as to the availability of labour and services, commodity price and exchange rate fluctuations, unexpected adverse weather conditions and changes to existing laws and regulations. Forward-looking statements are based on estimates and opinions of management of the Corporation at the time the information is presented. The Corporation may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Corporation undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.

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.

Contact Information

  • Canadian Oilfield Solutions Corp.
    Ken Berg
    President and Chief Executive Officer
    (403) 543-0060
    (403) 543-0069 (FAX)
    kberg@cotsoilfield.com

    Canadian Oilfield Solutions Corp.
    Scott Hamilton
    Chief Financial Officer
    (403) 543-0060
    (403) 543-0069 (FAX)
    shamilton@cotsoilfield.com