CALGARY, May 19, 2011 /CNW/ -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX:SES) is pleased to announce that it has closed its previously announced public offering (the "Offering"), on a bought-deal basis, of 12,696,900 subscription receipts of Secure ("Subscription Receipts"), including 1,691,700 Subscription Receipts issued in connection with the exercise of the underwriters' over-allotment option, to the public at a price of $6.65 per Subscription Receipt representing total gross proceeds of $86,249,835.
The Offering was made pursuant to an underwriting agreement with a syndicate of underwriters co-led by FirstEnergy Capital Corp. and Raymond James Ltd., and including CIBC World Markets Inc., Peters & Co. Limited, Macquarie Capital Markets Canada Ltd. and Paradigm Capital Inc.
The net proceeds of the Offering will be used by Secure to fund the cash portion of the purchase price in connection with the previously announced acquisition of Marquis Alliance Energy Group Inc. (the "Acquisition") and for working capital and general corporate purposes, including the funding of capital expenditures.
The gross proceeds of the Offering will be held in escrow by a Canadian trust company pending the completion of the Acquisition. If the Acquisition is completed on or before June 15, 2011, the net proceeds will be released to Secure and each Subscription Receipt will be exchanged for one common share of Secure for no additional consideration. If the Acquisition is not completed on or before June 15, 2011, if the Acquisition Agreement is terminated at an earlier time, or if Secure advises the Underwriters or announces to the public that it is not proceeding with the Acquisition, the holders of Subscription Receipts will receive a cash payment equal to the offering price of the Subscription Receipts and any interest that was earned thereon during the term of the escrow.
About Secure Energy Services Inc.
Secure is a TSX publicly traded energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The services provided by Secure assist these companies with the treatment and sale of crude oil and the handling of by-products associated with oil and natural gas development and production. The services provided by Secure include crude oil emulsion treatment, the terminalling and marketing of crude oil, oilfield waste processing, tank washing, landfill disposal, disposal of produced and waste water and the purchase and resale of crude oil at Secure facilities. The Corporation's services are provided at ten facilities in Alberta and two facilities in British Columbia.
When used in this news release, the words "will", "estimate" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the date that the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if conditions or opinions should change, except as required by applicable law.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in the United States absent registration or applicable exemption from those registration requirements. 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 news release.
