Entrec Corporation

Entrec Corporation

October 30, 2012 08:21 ET

ENTREC Corporation Closes $22 Million Public Offering of Convertible Debentures

SPRUCE GROVE, ALBERTA--(Marketwire - Oct. 30, 2012) - ENTREC Corporation (TSX VENTURE:ENT) ("ENTREC") today announced that it has closed its previously announced offering (the "Offering") of 7.00% convertible unsecured subordinated debentures (the "Debentures"), pursuant to which ENTREC issued and sold an aggregate $22,000,000 principal amount of Debentures at a price of $1,000 per Debenture. A syndicate of underwriters led by National Bank Financial Inc., and including Scotia Capital Inc., Canaccord Genuity Corp. and GMP Securities L.P., acted as underwriters for the Offering. The Offering was made by way of a short form prospectus dated October 23, 2012 filed by ENTREC with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, except Quebec.

ENTREC has granted the underwriters an irrevocable option to purchase, at the underwriters' election, exercisable in whole or in part at any time and from time to time up to 30 days following the closing of the Offering, up to $3,300,000 principal amount of additional Debentures on the same basis.

ENTREC intends to use the net proceeds of the Offering to fund future capital expenditures and, if necessary, for potential future business acquisitions, working capital and general corporate purposes.


ENTREC specializes in the lifting, transportation (over the road and on-site), loading, off-loading and setting of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT".

Forward-looking statements

Certain statements included in this news release, including statements or information that contain terminology such as "anticipate", "believe", "intend", "expect", "estimate", "may", "could", "will", and similar expressions, constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, that address activities, events, or developments that ENTREC or a third party expects or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions that ENTREC believes are reasonable and are subject to inherent risks and uncertainties. Forward-looking statements are not guarantees of future performance and actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control.

Examples of such forward-looking statements included in this news release include, but are not limited to ENTREC's expectations regarding the use of proceeds of the Offering. Assumptions underlying ENTREC's expectations regarding the use of proceeds of the Offering include, among others: (i) that ENTREC will use the net proceeds derived from the Offering in the manner specified herein; (ii) that potential future acquisitions will be available on reasonable terms; (iii) that ENTREC is able to receive all required regulatory and third party approvals required to complete any potential future acquisitions; and (iv) that such potential acquisitions can be successfully completed. Some of the risks and other factors, some of which are beyond ENTREC's control, which could cause results to differ materially from those expressed in such forward-looking statements include, but are not limited to: (i) there may be circumstances that are not known to ENTREC at this time where re-allocations of the net proceeds from the Offering may be advisable for business reasons that management believes are in ENTREC's best interests; (ii) general economic, market and business conditions in Canada and the other jurisdictions where ENTREC operates; (iii) that ENTREC is unable to identify acceptable future acquisition targets for any reason; (iv) that potential future acquisitions may not be available on reasonable terms; and (v) that ENTREC will be unable to obtain all required regulatory and third party approvals to complete potential acquisitions or will be unable to complete potential future acquisitions for any reason.

Consequently, all of the forward-looking statements included in this news release are qualified by these cautionary statements and other cautionary statements or risk factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, ENTREC. These forward-looking statements are made as of the date of this news release. Except as required by applicable securities legislation, ENTREC assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.

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

  • ENTREC Corporation
    Rod Marlin
    Chairman & CEO
    (780) 960-5647

    ENTREC Corporation
    John M. Stevens
    President & COO
    (780) 960-5625

    ENTREC Corporation
    Jason Vandenberg
    (780) 960-5630