EarthFirst closes sale of Common Shares and Warrants on Exercise of Over-Allotment Option



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/

    VICTORIA, Jan. 4 /CNW/ - EarthFirst Canada Inc. ("EarthFirst") (TSX: EF,
EF.WT) is pleased to announce that it has completed the issuance of an
aggregate of 1,778,000 common shares ("Common Shares") at a price of $2.10 per
share and 906,000 common share purchase warrants ("Warrants") at a price of
$0.30 per Warrant for aggregate gross proceeds of approximately $4 million.
Each Warrant entitles the holder thereof to purchase one Common Share at a
price of $2.60 at any time until December 11, 2009. This offering was made as
a result of the exercise of an over-allotment option granted to the
underwriters in connection with EarthFirst's previously completed initial
public offering.
    EarthFirst completed its $140 million initial public offering of units
(consisting of one Common Share and one half of one Warrant) and flow-through
shares, within the meaning of the Income Tax Act (Canada), on December 11,
2007. The net proceeds from the initial public offering and the net proceeds
from the issuance of Common Shares and Warrants pursuant to the exercise of
the over-allotment option will be used to fund the initial construction costs
of the Dokie I Project, ongoing development of EarthFirst's other windpower
projects and general corporate purposes.
    The offering was made through a syndicate of investment dealers co-led by
GMP Securities LP and Scotia Capital Inc. and includes National Bank Financial
Inc., TD Securities Inc., Canaccord Capital Corporation, HSBC Securities
(Canada) Inc., Orion Securities Inc. and Fraser Mackenzie Limited.

    EarthFirst is a leading Canadian developer of wind energy projects with a
portfolio of over 2,500 MW of potential renewable generating capacity. This
includes 174 MW which is expected to be in commercial production by the end of
2009 and an additional 226 MW which are fully permitted and expected to be
tendered into the BC Clean Power call this year. Common Shares and Warrants of
EarthFirst Canada Inc. are listed on the TSX under the symbol EF and EF.WT,
respectively.

    The securities offered have not been and will not be registered under the
United States Securities Act of 1933, as amended, and may not be offered or
sold within the United States or to, or for the account or benefit of, U.S.
persons absent registration or applicable exemption from the registration
requirements. This press release does not constitute an offer of the
securities in the United States or in any jurisdiction where such offer is
prohibited.

    A PROSPECTUS RELATING TO THESE SECURITIES HAS BEEN FILED WITH SECURITIES
    COMMISSIONS OR SIMILAR AUTHORITIES IN EACH OF THE PROVINCES OF CANADA AND
    IS AVAILABLE AT WWW.SEDAR.COM. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN
    OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY SECURITIES IN ANY
    JURISDICTION.

    THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN
    WHOLE OR IN PART (I) IN OR INTO THE UNITED STATES, THE UNITED KINGDOM,
    AUSTRALIA, JAPAN, THE REPUBLIC OF IRELAND, GERMANY, SWITZERLAND, SOUTH
    AFRICA OR ANY OTHER JURISDICTION IN OR INTO WHICH SUCH RELEASE,
    PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL; OR (II) TO ANY NATIONAL,
    RESIDENT OR CITIZEN OF SUCH JURISDICTIONS.





For further information:

For further information: Grant Bunker, Director, Investor Relations,
EarthFirst Canada Inc., Tel: (416) 628-2164, Toll Free: 1-866-622-4715,
E-mail: gbunker@earthfirstcanada.com; Derren Newell, VP, Finance and Chief
Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free:
1-877-513-0777, E-Mail: dnewell@earthfirstcanada.com

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EARTHFIRST CANADA INC.

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