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CALGARY, AB, April 4, 2022 /CNW/ – Cathedral Energy Services Ltd. (TSX:CET) (“Cathedral” or the “Company“) is pleased to announce that it has amended the terms of its previously announced offering of Units (as defined below). Under the amended terms of the Bought Deal Offering (as defined below), a syndicate of underwriters led by Acumen Capital Finance Partners Limited (the “Underwriters“) have agreed to purchase 32,858,000 Units (the “Units“) from the treasury of the Company, at a price of $0.70 per Unit (the “Issue Price“) and offer them to the public by way of short-form prospectus for total gross proceeds of $23,000,600 (the “Offering“).
Each Unit will be comprised of one common share in the capital of the Company (a “Common Share“) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant“). Each Warrant will be exercisable to acquire one additional Common Share (a “Warrant Share“) for a period of 12 months following the closing of the Offering (the “Closing”) at an exercise price of $0.85 per Warrant Share, subject to adjustment in certain events.
The Company has granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to such number of additional Units of the Company as is equal to 15% of the Units sold pursuant to the Offering at the Issue Price to cover over -allotments, if any, and for market stabilization purposes. The Over-Allotment Option shall be exercisable in whole or in part, at any time, and from time to time, for a period of 30 days following the Closing for any number of Units at a price equal to the Issue Price.
Total aggregate gross proceeds raised under the Offering, including proceeds raised from the exercise of the Over-Allotment Option, will be approximately $26,450,690 if the Over-Allotment Option is exercised in full.
The Company plans to use the net proceeds from the offering for general corporate and working capital purposes (including to repay bank indebtedness) and to help fund future acquisitions.
Closing of the Offering is expected to…
Full story available on Benzinga.com
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