CALGARY, ALBERTA - April 20, 2016 /CNW/ -
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Newalta Corporation ("Newalta") (TSX:NAL) announced today that it has completed its previously announced public and private offerings of common shares (the "Offerings") raising total gross proceeds of $54.2 million (net proceeds of approximately $51.6 million).
The Offerings include 17,981,400 common shares sold on a bought deal basis to the public at a price of $1.70 per share underwritten by a syndicate of underwriters led by Scotiabank (the "Public Offering"). The Public Offering includes 2,345,400 common shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters. The Offerings also include 13,930,200 common shares sold by way of private placement to certain institutional investors and certain officers and directors of Newalta at a price of $1.70 per share (the "Private Placement"). Certain officers and all directors of Newalta participated in the Private Placement by purchasing common shares in excess of $1.2 million in aggregate.
The net proceeds of the Offerings will be used to reduce Newalta's bank indebtedness and for general corporate purposes. After giving effect to the Offerings, the net amount drawn on Newalta's credit facility at March 31, 2016 in the amount of $77 million will be reduced to $26 million.
Newalta expects that the proceeds from the Offerings will further enhance its financial position and ability to withstand a prolonged market downturn, and better position the company upon market recovery.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under applicable securities laws.
Newalta is a leading provider of innovative engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from oil and gas exploration and production waste streams. We simplify the critical challenges of sustainable environmental practices through the use of advanced processing capabilities deployed through a differentiated business model. We serve customers onsite directly at their operations and through a network of locations throughout North America. Our proven processes and excellent record of safety make us the first-choice provider of sustainability-enhancing services for oil and gas customers. With a highly skilled team of people, a two-decade track record of innovation and a commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. We are Sustainability Simplified™. Newalta trades on the TSX as NAL. For more information, visitwww.newalta.com.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the Offerings, the impact of the Offerings on Newalta's financial position and balance sheet position, Newalta's position upon market recovery and Newalta's ability to manage its debt. Although Newalta believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Newalta can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include general market conditions of the oil and gas industry; strength of the oil and gas industry, including drilling activity; fluctuations in commodity prices; the availability of financing alternatives; and debt service and future capital needs.
The forward-looking statements contained in this press release are made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.