Ceiba Energy Services Inc.

TSX VENTURE : CEB


Ceiba Energy Services Inc.

April 15, 2014 09:34 ET

Ceiba Energy Services Inc. Announces Closing of Bought Deal Private Placement Including Full Exercise of Over-Allotment Option for Gross Proceeds of C$9,197,700

CALGARY, ALBERTA--(Marketwired - April 15, 2014) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSX VENTURE:CEB) is pleased to announce that is has completed its previously announced bought deal financing (the "Offering") with a syndicate of underwriters led by Clarus Securities Inc. and including Canaccord Genuity Corp., Scotia Capital Inc. and Jennings Capital Inc. (collectively, the "Underwriters"). Pursuant to the Offering, Ceiba issued an aggregate of 21,390,000 special warrants of the Company (the "Special Warrants") at a price of C$0.43 per Special Warrant for aggregate gross proceeds to the Company of C$9,197,700. The over-allotment option granted to the Underwriters to purchase up to an additional 15% of the Special Warrants purchased pursuant to the Offering, was exercised in full by the Underwriters.

Each Special Warrant is exercisable at any time after the closing of the Offering, for no additional consideration, to acquire one common share of the Company (a "Common Share"). All unexercised Special Warrants will be deemed to be exercised, for no additional consideration, upon the earlier of: (a) August 16, 2014, and (b) the date on which a receipt or deemed receipt, as applicable, is issued for a (final) prospectus (the "Qualification Prospectus") by the securities regulatory authorities in each of Alberta, British Columbia, Manitoba and Ontario for distribution of the Common Shares issuable upon exercise of the Special Warrants. The Company has agreed to use its commercially reasonable efforts to obtain such receipt.

The Special Warrants issued pursuant to the Offering will be subject to resale restrictions imposed by applicable securities laws.

The Underwriters were paid a cash fee equal to 6% of the gross proceeds of the Offering, other than in respect to 2,048,000 Special Warrants sold pursuant to the President's List, on which a cash fee of 4% was paid.

Ceiba intends to use the net proceeds of the Offering for corporate development, capital expenditures and general working capital purposes. The Offering is subject to the final approval of the TSX Venture Exchange (the "Exchange").

About Ceiba

Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in under serviced market space throughout Western Canada. Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.

Reader Advisory

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

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 the accuracy of this release.

Please visit Ceiba's website at www.ceibaenergy.com.

Forward-looking statements

Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Ceiba and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications to statements made by Ceiba. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Ceiba does not intend and undertakes no obligation to update these forward-looking statements, except as required under applicable securities laws.

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