Canexus Corporation
TSX : CUS

Canexus Corporation

January 16, 2014 18:41 ET

Canexus Corporation Announces Increase to Bought Deal Financing from C$100 Million to C$150 Million

CALGARY, ALBERTA--(Marketwired - Jan. 16, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Canexus Corporation ("Canexus", or the "Corporation") (TSX:CUS) is pleased to announce that, in connection with its previously announced offering of common shares ("Common Shares"), the Corporation and the syndicate of underwriters co-led by National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc. and BMO Nesbitt Burns Inc. have agreed to increase the size of the Offering to an aggregate of 26,800,000 Common Shares at a price of $5.60 per Common Share for total gross proceeds of $150,080,000.

The net proceeds of the Offering will be used to fund the remaining planned capital expenditures at the Corporation's North American Terminal Operations in Bruderheim, Alberta and for general corporate purposes.

The Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada, except Quebec and may also be offered by way of private placement in the United States to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers. Canexus' common shares (CUS) and debentures (Series III - CUS.DB.A; Series IV - CUS.DB.B; Series V - CUS.DB.C) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.

Forward Looking Statements

This press release contains forwarding looking statements. More particularly, this press release contains statements concerning the closing of the Offering and the anticipated use of the net proceeds of the Offering. By their nature, forward looking statements involve a variety of assumptions, known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward looking statements including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com. Although Canexus believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Canexus 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.

The closing of the Offering could be delayed if Canexus is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Offering might change if the Board of Directors of Canexus determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose.

The forward looking statements contained in this press release are made as of the date hereof and Canexus undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Canexus Corporation
    Gary Kubera
    President and CEO
    (403) 571-7300

    Canexus Corporation
    Richard McLellan
    CFO
    (403) 571-7300
    www.canexus.ca