Leader Energy Services Ltd.
TSX VENTURE : LEA

Leader Energy Services Ltd.

March 01, 2012 16:01 ET

Leader Energy Services Announces $5 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - March 1, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Leader Energy Services Ltd. ("Leader" or the "Company") (TSX VENTURE:LEA) is pleased to announce that it has entered into an agreement with AltaCorp Capital Inc. (the "Underwriter") pursuant to which the Underwriter has agreed to purchase, on a bought deal basis 7,145,000 Common Shares from the Company at a purchase price of $0.70 per Common Share, for gross proceeds of $5,001,500. The Underwriter will also have an option, exercisable for a period of 30 days following the closing date, to purchase from the Company up to an additional 1,071,750 Common Shares on the same terms and conditions to cover over-allotments and for market stabilization purposes.

The Company intends to use the net proceeds of the offering to reduce indebtedness and for general corporate purposes. The Common Shares will be offered in British Columbia, Alberta, Ontario and Quebec by way of a short form prospectus, and in the United States, the United Kingdom and certain other jurisdictions as may be agreed to by the Company on a private placement basis.

Closing of the offering is expected to occur on or about March 27, 2012 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

Leader Energy Services Ltd. provides well stimulation services in western Canada. Further information on Leader can be found under the Company's listing at www.sedar.com and on the Company's website at www.leaderenergy.com.

Forward-looking Information

This press release contains certain statements or disclosures relating to the Company that are based on the expectations of the Company as well as assumptions made by and information currently available to the Company which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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 news release.

Contact Information