By Sheri Kasprzak
New York, May 10 - Canadian Sub-Surface Energy Services Corp. has negotiated a C$17,499,997 private placement as part of its acquisition of the assets of Colter Production Services Inc.
In the placement, the company intends to sell 2,333,333 shares at C$7.50 apiece.
A syndicate of underwriters led by Raymond James Ltd. and including Sprott Securities Inc. and Westwind Partners Inc. has a greenshoe for up to 200,000 shares.
The proceeds will be used for a portion of the acquisition cost, as well as for working capital.
The placement is scheduled to close May 31.
Under the terms of the acquisition, Canadian Sub-Surface will buy all of the assets of Colter at C$29.85 million. Of that, C$16.3 million will be funded in cash and C$13.55 million through stock at C$7.37 per share.
Calgary, Alta.-based Canadian Sub-Surface provides wireline, product testing and well optimization and swabbing services to the oil and natural gas exploration sector.
| Issuer: | Canadian Sub-Surface Energy Services Corp.
|
| Issue: | Stock
|
| Amount: | C$17,499,997
|
| Shares: | 2,333,333
|
| Greenshoe: | For 200,000 shares
|
| Price: | C$7.50
|
| Warrants: | No
|
| Underwriters: | Raymond James Ltd. (lead), Sprott Securities Inc. and Westwind Partners Inc.
|
| Pricing date: | May 10
|
| Settlement date: | May 31
|
| Stock symbol: | Toronto: CSE
|
| Stock price: | C$7.80 at close May 9
|
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