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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.
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