/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT INTENDED FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
CALGARY, Feb. 15, 2017 /CNW/ - Cathedral Energy Services
Ltd. ("Cathedral" or the "Company") (TSX:CET) is pleased to
announce the closing of its previously announced bought deal public
offering of 11,500,000 common shares of the Company at a price of
$1.12 per share, which includes
1,500,000 common shares pursuant to the exercise in full of the
over-allotment option, for gross proceeds of $12,880,000 (the "Offering"). Concurrent with the
closing of the Offering, certain directors and officers of
Cathedral purchased a total of 1,116,071 common shares at a price
of $1.12 per share on a private
placement basis for gross proceeds of approximately $1,250,000 (the "Concurrent Private Placement").
The gross proceeds from the Offering and Concurrent Private
Placement totaled approximately $14,130,000.
GMP FirstEnergy acted as sole underwriter for the Offering.
The net proceeds of the Offering and Concurrent Private
Placement will initially be used to repay bank indebtedness and
then fund ongoing working capital requirements driven by increased
business activity, increase capacity through funding equipment
upgrades and capital expenditures, and for other general corporate
purposes.
The securities offered have not been, and will not be,
registered under the U.S. Securities Act or any U.S. state
securities laws and may not be offered or sold in the United States absent registration or an
available exemption from the registration requirement of the U.S.
Securities Act and applicable U.S. state securities laws. 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
these securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
ABOUT CATHEDRAL ENERGY SERVICES LTD.
Cathedral, based in Calgary, Alberta, is incorporated
under the Business Corporations Act (Alberta) and operates in the U.S. under
Cathedral Energy Services Inc. The Company is publicly traded
on the Toronto Stock Exchange under the symbol "CET".
Cathedral is a trusted partner to North American energy companies
requiring high performance directional drilling services. We work
in partnership with our customers to tailor our equipment and
expertise to meet their specific geographical and technical
needs. Our experience, technologies and responsive personnel
enable our customers to achieve higher efficiencies and lower
project costs. For more information,
visit www.cathedralenergyservices.com.
ADVISORY
This press release contains certain statements or disclosures
relating to Cathedral, the Offering and the Concurrent Private
Placement that are based on the expectations of Cathedral as well
as assumptions made by and information currently available to
Cathedral which may constitute forward-looking information under
applicable securities laws. In particular, statements related to
the use of proceeds of the Offering and the Concurrent Private
Placement contain forward-looking information. Assumptions have
been made with respect to, among other matters, general economic
and market conditions. Many factors could cause the performance or
achievement by Cathedral to be materially different from any that
are expressed or implied by such forward-looking information,
including without limitation, general economic and market
conditions, industry conditions, market and commodity price
volatility and the Company's financial and operational performance
and results. Additional information on these and other factors that
could affect Cathedral's operations and financial performance are
included in Cathedral's Annual Information Form and other documents
filed with securities regulatory authorities (accessible through
the SEDAR website (www.sedar.com). Cathedral disclaims any
intention or obligation to publicly update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities laws.
NOT FOR DISSEMINATION IN THE UNITED
STATES OF AMERICA
SOURCE Cathedral Energy Services Ltd.