Canyon Services Group Inc. Announces Closing of $63.25 Million Bought Deal Financing


CALGARY, March 29, 2016 /CNW/ - Canyon Services Group Inc. ("Canyon" or the "Company") (TSX:FRC) is pleased to announce that it has closed its previously announced bought deal offering of common shares.  Pursuant to the offering, the Company issued 15,812,500 common shares (including 2,062,500 common shares issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at a price of $4.00 per common share, for total gross proceeds of $63.25 million.  The syndicate of underwriters was led by Peters & Co. Limited and included CIBC World Markets Inc., Cormark Securities Inc., Raymond James Ltd., National Bank Financial Inc., AltaCorp Capital Inc., FirstEnergy Capital Corp., RBC Capital Markets and TD Securities Inc.

The net proceeds of the offering will be used to temporarily reduce bank indebtedness, increase working capital, fund ongoing capital expenditures and potential acquisition opportunities and for general corporate purposes.


This press release contains forward-looking statements which may include statements concerning the anticipated use of the net proceeds of the offering.  Although Canyon believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Canyon 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.  The intended use of the net proceeds of the offering by Canyon might change if the board of directors of Canyon determines that it would be in the best interests of Canyon to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and Canyon undertakes no obligations 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.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Corporation within the United States.  The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws.  Accordingly, the Common Shares may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.

SOURCE Canyon Services Group Inc.

For further information: Brad Fedora, President & CEO, Phone: 403-290-2491; or Barry O'Brien, Vice President, Finance & CFO, Phone: 403-290-2478; Canyon Services Group Inc. 2900 Bow Valley Square III 255-5th Avenue S.W. Calgary, Alberta, T2P 3G6 Fax: 403-355-2211


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