Lonestar West Inc.

TSX VENTURE : LSI


Lonestar West Inc.

May 21, 2014 15:55 ET

Lonestar Announces Bought Deal Financing for Gross Proceeds of Approximately $20.0 Million

SYLVAN LAKE, ALBERTA--(Marketwired - May 21, 2014) -

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

Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or the "Company") is pleased to announce that it has entered into an agreement with National Bank Financial Inc. on behalf of a syndicate of underwriters consisting of National Bank Financial Inc., Clarus Securities Inc., and Industrial Alliance Securities Inc. (collectively, the "Underwriters"), pursuant to which the Company will issue from treasury, and the Underwriters shall purchase on a "bought-deal" basis 6,061,000 common shares (the "Shares"). The Shares will be offered to the public by way of a short form prospectus at a price of $3.30 per Share, for gross proceeds to the Company of $20,001,300 (the "Offering").

The net proceeds of the Offering will be principally used to finance acquisitions as well as to fund ongoing growth for 2014, with the remainder being used for general working capital purposes.

The Company expects to file a preliminary short form prospectus relating to the Offering on May 27, 2014 and closing of the Offering is expected to occur on or about June 13, 2014. The Offering is subject to normal regulatory approvals, including approval of the TSX Venture Exchange. The Shares will be offered in each of the provinces of Canada, excluding Quebec, and if offered in the United States, by way of private placement in accordance with applicable registration exemptions.

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

About Lonestar West

The Company currently operates a fleet of 89 HVAC and vacuum trucks throughout Western Canada and the United States from its base in Sylvan Lake, Alberta. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.

For more information please visit the Lonestar West website at www.lonestarwest.com.

Caution Concerning Forward-Looking Statements

Certain statements in this news release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations, including statements relating to the proposed Offering and use of proceeds thereof, that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Readers are encouraged to review the most recently filed Management's Discussion and Analysis and other disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. Readers are cautioned not to place undue reliance on the Company's forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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.

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