Aveda Transportation and Energy Services Inc (TSX-V: AVE) has priced its previously-announced public offering of common shares, which is targeted to raise gross proceeds of $20 million to $25 million. Werklund Capital Corp, a Canadian private equity family office, has agreed to subscribe for up to $5 million. Calgary-based Aveda, a provider of oilfield hauling services and equipment rentals to the energy industry, said the offering’s proceeds will be used for debt reduction, working capital and other priorities. Werklund invested in the company in 2010 and is its largest shareholder.
Aveda Transportation and Energy Services Announces Upsizing and Pricing of Public Offering
CALGARY, AB–(Marketwired – January 31, 2017)
Aveda Transportation and Energy Services Inc. (“Aveda” or the “Company”) (TSX VENTURE: AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, announced today that it is has priced its previously announced public offering (the “Offering”) of common shares of the Company (the “Common Shares”). Pursuant to the Offering, the Company has engaged a syndicate of agents, co-led by Beacon Securities Limited and Canaccord Genuity Corp., and including PI Financial Corp. and Mackie Research Capital Corporation (collectively, the “Agents”), to sell a minimum of 33,334,000 Common Shares and a maximum of 41,667,000 Common Shares at a price of C$0.60 per Common Share (the “Offering Price”), for aggregate gross proceeds to the Company of a minimum of C$20,000,400 and a maximum of C$25,000,200 in each of the provinces of British Columbia, Alberta, Manitoba and Ontario (the “Offering Jurisdictions”). Aveda has also granted the Agents an over-allotment option, exercisable, in whole or in part, at any time in the 30-day period following the closing of the Offering, to sell up to an additional 15% of the number of Common Shares sold pursuant to the Offering at the Offering Price to cover over-allotments, if any, and for market stabilization purposes.
The Company has received a receipt from the Alberta Securities Commission for the preliminary short form prospectus filed in connection with the Offering, dated January 17, 2017, which is available on SEDAR at www.sedar.com. Aveda will file a final short form prospectus in connection with the Offering in each of the Offering Jurisdictions. The Offering is expected to close on or about February 16, 2017 and is subject to customary closing conditions, including obtaining the approval of the TSX Venture Exchange and receipts from applicable securities regulatory authorities for the final short form prospectus.
The net proceeds of the Offering will be used for debt reduction, enhanced working capital and general corporate purposes. Werklund Capital Corporation and Werklund Ventures Ltd. (collectively “WCC”), Aveda’s largest shareholders holding approximately 40% of the Company, have committed to subscribe for up to $5,000,000 of the Offering on the same terms and conditions as public investors, subject to regulatory, shareholder and TSX Venture Exchange approval previously described in the Company’s January 17, 2017 news release. Senior executives of Aveda are also anticipated to participate in the Offering.
The securities offered have not been registered under the U.S. 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 requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.
About Aveda Transportation and Energy Services
Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States of America principally in and around the states of Texas, Oklahoma, Pennsylvania, Wyoming and North Dakota. Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda’s rental operations include the rental of well-sites, tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.
Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Calgary, AB, Leduc, AB, Edson, AB, Pleasanton, TX, Midland, TX, Pecos, TX, Marshall, TX, Williamsport, PA, Casper, WY, Williston, ND, and Oklahoma City, OK. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. For more information on Aveda please visit www.avedaenergy.com.
For more information, please contact:
Bharat Mahajan, CA
Vice President, Finance and Chief Financial Officer
Photo courtesy of Aveda Transportation and Energy Services Inc