CATHEDRAL ENERGY SERVICES CLOSES $26.4 MILLION EQUITY FINANCING, INCLUDING FULL EXERCISE OF OVERALLOCATION OPTION
/THIS PRESS RELEASE IS FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR BROADCASTING IN UNITED STATES./
CALGARY, Alta., April 25, 2022 /CNW/ – Cathedral Energy Services Ltd. (TSX: CET) (“cathedral“or the”Company“) is pleased to announce that it has closed its previously announced bought deal simplified prospectus offering (the “Offer“) units (“Units“) of the Company, including the full exercise of the underwriters’ over-allotment option. The Offering was conducted by Acumen Capital Finance Partners Limited (“Insight“or the”Primary Subscriber“) and included Peters & Co. Limited (collectively with Acumen, the “Subscribers“).
Under the Offer, the Company issued a total of 37,786,700 Units at a price of $0.70 per unit, for total gross proceeds of $26,450,690. Each Unit is made up of one ordinary share in the capital of the Company (a “Ordinary share“) and one-half common share purchase warrant (each whole common share purchase warrant, one “To guarantee“). Each warrant may be exercised to acquire one additional common share (a “Warrant action“) for a period of 12 months following the closing of the Offer (the “Closing“) at an exercise price of $0.85 per Warrant Share, subject to adjustment in certain circumstances. It is expected that the Warrants will begin trading on April 25, 2022 on the Toronto Stock Exchange (the “TSX“) under the symbol “CET.WT”
The Company expects to use the net proceeds of the offering for general corporate purposes and working capital, capital expenditures and the repayment of approximately half of the term loan in accordance with its credit agreement. modified and updated.
“This financing strengthens Cathedral’s ability to execute our accelerated growth strategy through accretive acquisitions and further expands our ability to deploy high-performance technology offerings and grow our market share,” said Tom ConnorsPresident and CEO of Cathedral.
Certain Cathedral insiders participated in the Offering and received 10,714,286 Units. Such participation in the Placement constitutes a “related party transaction” within the meaning of Regulation 61-101 respecting the protection of minority security holders in special transactions (“61-101The Offer is exempt from the formal valuation and minority shareholder approval requirements of 61-101 since neither the fair market value of the securities issued to insiders nor the consideration for such securities by insiders exceeds 25% of the market capitalization of the Company The Company did not file a material change report 21 days before the closing of the Offer because the Company’s insider participation in the Offer had not been confirmed at that time -the.
DS Lawyers Canada LLP acted as legal counsel to the Company in connection with the Offer. Burnet, Duckworth & Palmer LLP acted as legal advisors to the underwriters in connection with the offer.
This press release does not constitute an offer to sell or a solicitation of an offer to sell securities in United States. The securities have not been and will not be registered under United States securities law or any state securities law and may not be offered or sold in United States or to, for or for the benefit of U.S. Persons (as that term is defined in Regulation S of the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws securities or an exemption from such registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT THE CATHEDRAL
Cathedral Energy Services Ltd., based in Calgary, AB is incorporated under the Business Corporations Act (alberta) and operates in the United States as Cathedral Energy Services Inc. Cathedral is listed on the Toronto Stock Exchange under the symbol “CET”. Cathedral is a trusted partner for North American energy companies in need of high performance directional drilling services. We work in partnership with our clients to tailor our equipment and expertise to meet their specific geographic and technical needs. Our experience, technologies and responsive staff enable our clients to achieve greater efficiency and lower project costs. For more information visit www.cathedralenergyservices.com
All information in this press release, including statements by Cathedral that express management’s expectations or estimates of future performance, other than statements of historical fact, constitutes forward-looking information or forward-looking statements within the meaning of applicable securities laws and are based on management’s expectations, estimates and projections as of the date hereof. Forward-looking statements are included for the purpose of providing information about management’s current expectations and plans regarding the future. Wherever possible, words such as “plans”, “expects”, “believes”, “intends”, “ability to”, or statements that certain actions, events or results ” may”, “should”, “could” or are “likely” to occur, or the negative form of these words or other variations thereof, have been used to identify this forward-looking information. In this press release, forward-looking statements relate to, among other things, the listing of the Warrants on the TSX, the expected use of the net proceeds of the Offering and Cathedral’s business plans and growth strategies. The forward-looking statements discussed in this release may not occur and may differ materially due to known and unknown risk factors, including, but not limited to, risks relating to: oil and gas market conditions and financial in Canada and United Statesgeopolitical factors, the risk that Cathedral may not be able to identify and/or secure additional accreditation opportunities in Canada and or United Statesmanagement’s ability to execute and fund its business strategy, and the impact of general economic conditions in Canada and United States, including debt markets and stock markets in general. Additional information regarding the risks and uncertainties of the Company’s business can be found under the heading “Risk Factors” in the Company’s Annual Information Form for the year ended. December 31, 2021 and other public documents filed by the Company which are available under the Company’s profile on SEDAR at www.sedar.com. The forward-looking information included in this press release is made as of the date of this press release, and the Company undertakes no obligation to publicly update such forward-looking information to reflect new information, future events or otherwise, unless required. by applicable law.
DO NOT DISTRIBUTE IN THE UNITED STATES OF AMERICA
SOURCE Cathedral Energy Services Ltd.
For further information: Inquiries should be directed to: Tom Connors, President and Chief Executive Officer, Ian Graham, Chief Financial Officer, Cathedral Energy Services Ltd., 6030 3 Street SE, Calgary, Alberta T2H 1K2, Telephone: 403.265. 2560, fax: 403.262.4682, www.cathedralenergyservices.com