/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES/
VANCOUVER, March 2, 2017 /CNW/ - Grande West
Transportation Group Inc. (TSX-V: BUS) ("Grande West" or
the "Company") is pleased to announce that it has
completed its previously announced bought deal private placement of
common shares (the "Offered Shares") of the Company, at a
price of $1.90 per Offered Share (the
"Issue Price") for gross proceeds to the Company of
$13,680,000 (the "Offering").
A total of 7,200,000 Offered Shares were sold pursuant to the
Offering, including 870,000 Offered Shares issued as a result of
the full exercise of the Underwriters' over-allotment option. The
Offering was conducted by a syndicate of underwriters led by Beacon
Securities Limited and including Echelon Wealth Partners Inc.
(collectively, the "Underwriters").
William Trainer, President and
CEO of Grande West, stated, "All of us at Grande West would like to
thank our new and existing shareholders for making this financing
such a success. We are pleased that the market has given us such
great support as we move ahead in expanding Grande West's efforts
in establishing Vicinity throughout North
America. These funds significantly improve the Company's
financial position and strengthen our balance sheet. We will be
using this additional working capital to reduce debt, expand
current production capabilities, aggressively grow our US business,
and for other general corporate purposes."
All securities issued in connection with the Offering are
subject to a hold period which will expire on July 3, 2017, the date that is four months and
one day from the closing of the Offering.
The Company paid to the Underwriters a cash commission equal to
6% of the gross proceeds raised under the Offering. The Company
also issued to the Underwriters compensation options (the
"Compensation Options") equal to 6% of the Offered
Shares issued pursuant to the Offering. Each Compensation Option is
exercisable into one common share of the Company at the Issue Price
for a period of 18 months from the closing of the Offering.
The net proceeds from the Offering will be used for working
capital and general corporate purposes.
The Offered Shares have not been, and will not be, registered
under the U.S. Securities Act of 1933, as amended (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 Venture Exchange ("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 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 receipt of final approval from the TSX-V; and other
risks 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.