Orbit Garant Drilling Inc.

June 20, 2008 17:53 ET

Orbit Garant Drilling Inc. Announces Filing of Final Prospectus for $60 Million Initial Public Offering and Secondary Offering

TORONTO, ONTARIO--(Marketwire - June 20, 2008) -

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

Orbit Garant Drilling Inc. ("Orbit Garant" or the "Company") today announced that it has filed a final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with the proposed initial public offering of common shares by Orbit Garant and a secondary offering of common shares by shareholders of Orbit Garant. Orbit Garant and the selling shareholders of the Company have entered into an underwriting agreement with a syndicate of underwriters led by CIBC World Markets Inc. and including RBC Dominion Securities Inc., National Bank Financial Inc., GMP Securities L.P. and Desjardins Securities Inc. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase, subject to the terms and conditions of the underwriting agreement, (i) 7,505,006 common shares of the Company at a price of $4.00 per share for total gross proceeds to Orbit Garant of $30,020,024, and (ii) 7,494,994 common shares from the selling shareholders for total gross proceeds to the selling shareholders of $29,979,976.

In addition, the selling shareholders of Orbit Garant have granted to the Underwriters an over-allotment option, exercisable for a period of 30 days from the closing of the offering, to purchase up to an additional 2,250,000 common shares of the Company from the selling shareholders at a price of $4.00 per share, solely in order to cover over-allotments, if any, and for market stabilization purposes.

The Company will use the net proceeds of the treasury component of the offering to repay amounts outstanding under its existing credit agreement and for the payment of purchase price, working capital and other adjustments pursuant to the share purchase agreement under which the Company previously acquired Forage Orbit Inc. The Company will not receive any proceeds from the secondary offering or from the exercise of the over-allotment option.

The offering is scheduled to close on or about June 26, 2008. The Toronto Stock Exchange has conditionally approved the listing of the Company's common shares, subject to satisfaction of standard listing conditions, under the stock symbol "OGD".

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Orbit Garant

Orbit Garant is one of the largest Canadian-based drilling companies, providing both underground and surface drilling services in Canada and internationally through its 116 drills and approximately 500 employees. Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production.

Contact Information

  • Orbit Garant Drilling Inc.
    Eric Alexandre
    President and Chief Operating Officer
    (819) 824-2707 x233