Bri-Chem Announces Closing of $10 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S. 

Bri-Chem Corp. ("Bri-Chem" or "Company") (TSX:BRY), a leading North American
wholesale distributor and manufacturer of oil and gas drilling fluids and steel
pipe is pleased to announce it has closed its previously announced bought deal
equity financing (the "Offering") for 6,667,000 common shares of the Company at
a price of $1.50 per common share (the "Offering Price") for gross proceeds of
$10,000,500. The Offering was completed pursuant to the terms of an underwriting
agreement dated December 4, 2013, between Bri-Chem and Cormark Securities Inc.,
as lead underwriter, together with Beacon Securities Limited and Paradigm
Capital Inc. (collectively the "Underwriters"). Pursuant to the underwriting
agreement, the Underwriters have been granted an option (the "Over-Allotment
Option"), exercisable for a period of 30 days from the date hereof, to purchase
up to an additional 1,000,050 Common Shares at the Offering Price for additional
gross proceeds of up to $1,500,075, upon the terms and conditions set forth in
the underwriting agreement, to cover over-allotments, if any, made in connection
with the Offering and for market stabilization purposes.


Bri-Chem initially intends to apply the net proceeds of the Offering (including
on any exercise of the Over-Allotment Option) to reduce outstanding indebtedness
under the Company's borrowing facility, thereby freeing up borrowing capacity
that may be redrawn to fund the Company's ongoing growth opportunities and, more
specifically, to continue to fund further U.S. expansion in its North American
drilling fluids divisions, through both organic growth and potential
acquisitions. 


This press release does not constitute an offer of the common shares for sale in
the United States. The common shares have not been registered under the United
States Securities Act of 1933, (the "1933 Act") as amended, and may not be
offered or sold within the United States absent registration or an exemption
from registration under the 1933 Act. 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 the securities in any state in which such offer, solicitation or sale would
be unlawful.


About Bri-Chem

Since our formation in 1985, Bri-Chem has established two primary segments of
business through a combination of internal growth and acquisitions: Bri-Chem's
Drilling Fluid Division is North America's largest independent wholesale
supplier of drilling fluids for the oil and gas industry. We provide over 100
critical drilling fluid products, cementing, acidizing and stimulation additives
from 31 strategically located warehouses throughout Canada and the United
States; Bri-Chem's Steel Pipe Division is the first company to introduce and
construct a Thermal Pipe Expansion (TPE) facility in North America for
manufacturing, testing and supply of large diameter seamless steel pipe for the
energy industry. Additional information about Bri-Chem is available at
www.sedar.com or at Bri-Chem's website at www.brichem.com. 


Forward Looking Statements

Certain information set forth in this news release contains forward-looking
statements or information ("forward-looking statements"), including statements
which may contain words such as "could", "should", "expect", "anticipate",
"believe", "will", and similar expressions and statements relating to matters
that are not historical facts are forward looking statements. In this press
release, these statements relate to the use of proceeds of the Offering. By
their nature, forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond the Company's control, including the
impact of general economic conditions, industry conditions, volatility of
commodity prices, currency fluctuations, environmental risks, demand for
oilfield services for drilling and completion of oil and natural gas wells;
volatility in market prices for steel, oil, natural gas, and natural gas liquids
and the effect of this volatility on the demand for oilfield services generally,
competition from other industry participants, the lack of availability of
qualified personnel or management, stock market volatility and the ability to
access sufficient capital from internal and external sources. Although the
Company believes that the expectations in our forward-looking statements are
reasonable, our forward-looking statements have been based on factors and
assumptions concerning future events which may prove to be inaccurate. Those
factors and assumptions are based upon currently available information. Such
statements are subject to known and unknown risks, uncertainties and other
factors that could influence actual results or events and cause actual results
or events to differ materially from those stated, anticipated or implied in the
forward looking information. As such, readers are cautioned not to place undue
reliance on the forward looking information, as no assurance can be provided as
to future results, levels of activity or achievements. The risks, uncertainties,
material assumptions and other factors that could affect actual results are
discussed in our Annual Information Form, our short form prospectus dated
December 12, 2013 and other documents available at www.sedar.com. Furthermore,
the forward-looking statements contained in this document are made as of the
date of this document and, except as required by applicable law, the Company
does not undertake any obligation to publicly update or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements contained in this
document are expressly qualified by this cautionary statement.


To receive Bri-Chem news updates send your email to ir@brichem.com. 

FOR FURTHER INFORMATION PLEASE CONTACT: 
Jason Theiss
Bri-Chem Corp.
CFO
(780) 577-0595
jtheiss@brichem.com


Robin Cook
CHF Investor Relations
Account Manager
(416) 868-1079
juliet@chfir.com


Cathy Hume
CHF Investor Relations
CEO
(416) 868-1079 x231
cathy@chfir.com
Bri Chem (TSX:BRY)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024