CALGARY, Feb. 17 /CNW/ - CHEQ-IT Ltd. ("CHEQ-IT") (TSXV: CQT) is pleased to announce that Tuscany International Drilling Inc. ("Tuscany"), a private drilling service company with operations in South America, has completed a private placement of 42,269,501 special warrants of Tuscany at a purchase price of US$1.50 per special warrant for aggregate proceeds of US$63,404,251.50. Each special warrant shall be exercised or exchanged, as the case may be, for one common share in the capital of Tuscany and one half (1/2) of one common share purchase warrant upon the earlier of: (i) June 13, 2010; and (ii) the occurrence of a going public transaction of Tuscany, including, without limitation, pursuant to the previously announced plan of arrangement between Tuscany and CHEQ-IT under which Tuscany will acquire all of the issued and outstanding common shares of CHEQ-IT on the basis of 0.0265 of a common share of Tuscany for each common share of CHEQ-IT. Each whole underlying warrant entitles the holder thereof to purchase one common share at a price of US$1.75 per share, expiring 18 months from the date of grant. The brokered portion of the special warrant financing was effected by a syndicate of investment dealers co-led by Thomas Weisel Partners Canada Inc. and Jennings Capital Inc. and included Raymond James & Associates, Inc.
Tuscany International Drilling Inc.
Tuscany, a privately held corporation based in Calgary, Alberta, is engaged in the business of providing contract drilling and work-over services along with drilling tool rentals to the oil and gas industry, initially in South America. The current fleet consists of 6 of the latest technology new built rigs (2 drilling and 4 heavy work-over) and related equipment along with 2 new design Heli portable small footprint rigs under construction for deployment to South America. In addition to the two new design heli portable rigs currently under construction, Tuscany expects that its 2010 new build capital program will include the construction of four 750/850 HP drilling rigs, two 1,500 HP rigs, two 650 HP heavy duty work-over rigs, the purchase of one 2,000 HP heli-portable rig and the purchase of approximately US$10 million in rental assets.
About CHEQ-IT Ltd.
CHEQ-IT presently develops, sells and supports cheque writing and electronic fund transfer systems. Operations to date have primarily been focused in southern Alberta, within the oil and gas industry. The CHEQ-IT Shares trade on the TSX Venture Exchange under the symbol CQT.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CHEQ-IT LTD.
For further information: For further information: W. Glenn Hamilton, Chief Financial Officer, CHEQ-IT Ltd., 410, 816-7th Avenue S.W., Calgary, Alberta, Phone (403) 241-2607, Fax (403) 239-4613