Maxim Power Corp.
TSX VENTURE : MXG
TSX : MXG

Maxim Power Corp.

June 19, 2008 08:03 ET

Maxim Power Corp. Announces $65,000,000 Million Financing

CALGARY, ALBERTA--(Marketwire - June 19, 2008) -

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

Maxim Power Corp. (TSX:MXG) announced today that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc., and including BMO Capital Markets and First Energy Capital Corp. pursuant to which the underwriters have agreed to purchase, on a private placement basis, 10,000,000 common shares of Maxim at a price of $6.50 per common share for aggregate gross proceeds of $65,000,000. The Underwriters will also have the option to purchase up to an additional 1,000,000 common shares at a price of $6.50 per common share at any time until the closing date. In the event that the option is exercised in full, the gross proceeds of the offering shall be $71,500,000.

The net proceeds from the offering will be used to finance the acquisition of the 170 megawatt Pittsfield Generating Station, development costs related to the 190 megawatt Deerland Peaking Station, and for general corporate purposes.

The financing is expected to close on or about July 10, 2008.

About Maxim Power Corp. ("MXG")

Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power plants. MAXIM now owns and operates 33 power plants in Western Canada, United States and France, having 584 MW of electric and 132 MW of thermal generating capacity. Upon closing the acquisition of the Pittsfield Power Plant, MAXIM will own 34 power plants having 754 MW of electric and 132 MW of thermal generating capacity. MAXIM will continue to execute on its strategy as an independent power producer and is targeting significant growth through acquisitions and development of power projects which utilize hydrocarbon based fuels and renewables in the markets of Western Canada, United States and France. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward looking statements as required pursuant to applicable securities laws.

The common shares offered have not been and will not be registered under the United States 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 requirement. 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.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Maxim Power Corp.
    John R. Bobenic
    President & CEO
    (403) 750-9300
    or
    Maxim Power Corp.
    Mike Mayder
    VP Finance & CFO
    (403) 750-9311
    Website: www.maximpowercorp.com