/NOT FOR DISSEMINATION IN THE UNITED
STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
VANCOUVER, Feb. 8, 2017 /CNW/ - Grande West
Transportation Group Inc. (TSX-V: BUS) ("Grande West" or the
"Company") is pleased to announce that it has amended the terms
of its previously announced bought deal offering of common shares
(the "Offered Shares") of the Company. Under the amended
terms of the Offering (as defined below), Beacon Securities
Limited("Beacon"), on its own behalf and on behalf of a
syndicate of underwriters (together with Beacon, the
"Underwriters"), have agreed to purchase, on a bought deal
basis, 6,330,000 Offered Shares of the Company at a price of
$1.90 per Offered Share (the"Issue
Price"), for aggregate gross proceeds to the Company of
$12,027,000 (the
"Offering").
In addition, under the amended terms of the Offering, the
Company has granted the Underwriters an option (the
"Underwriters' Option), exercisable, in whole or in part by
Beacon, on behalf of the Underwriters, giving notice to the Company
at any time up to 48 hours prior to the Closing Date (as defined
below), to purchase up to an additional 870,000 Offered Shares at
the Issue Price for additional gross proceeds of up to $1,653,000. In the event the Underwriters' Option
is exercised in full, the aggregate gross proceeds of the Offering
will be $13,680,000.
The net proceeds from the Offering will be used
for working capital and general corporate purposes.
The completion of the Offering is expected to
occur on or about March 2, 2017 (the
"Closing Date") and is subject to the completion of formal
documentation and receipt of applicable regulatory approvals,
including the approval of the TSX Venture Exchange
("TSX-V"). All securities issued in connection with the
Offering will be subject to a four month hold period from the
Closing Date in accordance with applicable Canadian securities
laws.
The Offered Shares will be offered on a private
placement basis in each of the provinces of Canada and may be offered in the United States on a private placement basis
pursuant to an exemption from registration requirements of the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), and such other jurisdictions as may be agreed
upon by the Company and the Underwriters.
The Offered Shares 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 or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This release shall not constitute an
offer to sell or the solicitation of an offer to buy securities in
the United States, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
About Grande West Transportation Group
Grande West Transportation Group is a Canadian
bus manufacturer which designs, engineers and manufactures mid-size
buses for transit authorities and commercial enterprises.
Grande West's Best-in-Class Vicinity
bus is available in 27.5, 30 and 35 foot models powered by clean
diesel or CNG designed with affordability, accessibility and global
responsibility in mind. It costs significantly less than a regular
40 foot transit bus, burns less fuel and emits less harmful
emissions.
The Company has been successful in supplying
Canadian municipal transportation agencies and private operators
with new buses and is receiving follow-on orders in many Canadian
transit agencies. Grande West is Buy
America certified and along with ABG, its exclusive US distributor,
is actively pursuing opportunities to sell Vicinity into public and
private transit fleet operations.
Neither the TSX-V nor its Regulation Service
Provider (as that term is defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain
"forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of
applicable Canadian securities legislation. All statements, other
than statements of historical fact, included herein, including
without limitation, statements regarding the completion of the
Offering and the use of proceeds from the Offering, are
forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential",
"possible", and similar expressions, or statements that events,
conditions, or results "will", "may", "could", or "should" occur or
be achieved. Forward-looking statements involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could
differ materially from those anticipated in such
statements.
Important factors that could cause actual
results to differ materially from Grande
West's expectations include uncertainties relating to the
ability to negotiate the Offering on acceptable terms; timing of
closing; the ability to satisfy conditions of the Offering; receipt
of approval from the TSX-V; completion of the Offering; and other
risk and uncertainties disclosed in Grande
West's reports and documents filed with applicable
securities regulatory authorities from time to time. Grande West's forward-looking statements reflect
the beliefs, opinions and projections on the date the statements
are made. Grande West assumes no
obligation to update the forward-looking statements or beliefs,
opinions, projections, or other factors, should they change, except
as required by law.
SOURCE Grande West Transportation Group Inc.