CALGARY, May 15, 2012 /CNW/ - Ridgeline Energy Services Inc. (TSX-V: RLE; OTCQX: RGDEF) ("Ridgeline" or the "Company") is pleased to announce its bought deal offering (the "Offering") announced on May 14, 2012 of 2,857,000 common shares in the capital of Ridgeline (the "Common Shares") at $0.70 per Common Share for gross proceeds of approximately $2 million has been increased by approximately $8 million, to $10,000,200. The Offering is being underwritten by a syndicate of underwriters (collectively, the "Underwriters") in Canada. Ridgeline has also granted to the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase an additional 2,143,000 of Common Shares on the same terms, exercisable in whole or in part at any time prior to 30 days after closing of the Offering (the "Closing"). If the Over-Allotment Option is exercised in full, the total gross proceeds to Ridgeline from the sale of Common Shares under the Offering will be approximately $11.5 million.
The net proceeds received by the Company from the Offering and Over-Allotment Option will be used for commercialization, acquisitions, development, and working capital.
The Offering is scheduled to close on or about the week of June 4th, 2012 or as otherwise determined by the Company and Underwriters and is subject to certain customary conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities. The Common Shares will be offered by way of a short-form prospectus to be filed in such provinces of Canada (except Quebec), where the Common Shares are sold, pursuant to National Instrument 44-101 - Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons," as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is an energy services and water treatment company. The Company is applying proprietary technology to treat the large volumes of contaminated water generated by oil and gas production. The Company is working with energy majors in the application of its technology for the recycle and reuse of; produced and hydraulic stimulation flowback water; enhanced recovery chemical flood water; and oil sands process water. As well the Company is applying its technology in the testing and treatment of commercial and industrial waste water. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established provider of environmental services to North America's oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Tony Ker, CEO
"Neither 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 news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is 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. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."
For further information:
Ryan Johnson of Ridgeline Energy Services Inc.
David Waldman at Crescendo Communications