/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
CALGARY, Oct. 2 /CNW/ - Western Energy Services Corp. ("Western" or the
"Company") is pleased to announce that it is proceeding with its previously
announced rights offering to shareholders of the Company (the "Rights
Offering"). Pursuant to the Rights Offering, each holder of common shares of
the Company will receive one right (a "Right") for every share held. For every
4 Rights held a holder thereof will be entitled to purchase one common share
of the Company at an exercise price of $0.30 per share. This exercise price
represents a discount of approximately 19% to the previous 20 day average of
the closing price of Western's shares on the TSX Venture Exchange (the
"TSXV"). Pursuant to the Rights Offering a maximum of approximately 3,500,163
common shares (on a post-Consolidation basis) can be issued representing 25%
of the issued and outstanding common shares.
The record date for the Rights Offering has been set at October 15, 2008.
The Rights will expire at 4:00 pm (Calgary time) on November 5, 2008. The
Company has received conditional approval for listing of the Rights and the
common shares to be issued upon exercise of the Rights on the TSXV. Completion
of the Rights Offering is subject to receiving all necessary regulatory and
TSXV approvals. For full details of the Rights Offering please see the
Company's Rights Offering circular which has been filed with securities
commissions in Canada and is available on SEDAR at www.sedar.com.
Western is also proceeding with its previously announced non-brokered
private placement (the "Private Placement"). Under the Private Placement, the
Company will be issuing common shares at $0.30 per share to accredited
investors and other qualified purchasers, on an exempt, private placement
basis. The number of common shares issued under the Private Placement will be
dependent upon the number of Rights exercised, with gross aggregate proceeds
from both the Rights Offering and the Private Placement expected to be
approximately $2 million. The Private Placement is to close on or about the
same time as the Rights Offering. The common shares issued in the Private
Placement will be subject to a 4 month hold period.
Western also announces two upcoming information sessions to which
investors are invited. One session will be in Calgary on October 8, 2008 from
3:00 to 5:00 p.m at the Bow Valley Club, 333 5th Avenue SW in the John Lecky
Room. The second session will be in Lloydminster, Alberta on October 16, 2008
from 7:00 to 9:00 p.m at the Wayside Inn in Lloydminster, in the Alberta Room.
The information presented at these sessions will be posted on the Company's
website immediately after the Calgary session.
This news release does not constitute an offer to sell securities, nor is
it a solicitation of an offer to buy securities, in any jurisdiction. All
sales will be made through registered securities dealers in jurisdictions
where the offering has been qualified for distribution. The securities offered
are not, and will not be, registered under the securities laws of the United
States of America, nor any state thereof and may not be sold in the United
States of America absent registration in the United States or the availability
of an exemption from such registration.
Forward Looking Statements
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities laws.
The use of any of the words "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "may", "will", "project", "should", "believe",
"plans", "intends" and similar expressions are intended to identify
forward-looking information or statements. More particularly and without
limitation, this press release contains forward-looking statements and
information concerning the Rights Offering and Private Placement. The
forward-looking statements and information are based on certain key
expectations and assumptions made by Western, including expectations and
assumptions concerning the Rights Offering and Private Placement. Western has
made such expectations and assumptions on factors it believes are reasonable
at this time, including assumptions as to the timing of receipt of the
necessary regulatory approvals. Although Western believes that the
expectations and assumptions on which such forward-looking statements and
information are based are reasonable at the date of this press release, undue
reliance should not be placed on the forward looking statements and
information as Western can give no assurance that they will prove to be
correct. Since forward-looking statements and information address future
events and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These factors include
failure to obtain required regulatory approvals and others.
Readers are cautioned that the foregoing list of factors is not
exhaustive. The forward-looking statements and information contained in this
press release are made as of the date hereof and Western undertakes no
obligation 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.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Additional information relating to the Company
is filed on SEDAR at www.sedar.com. Please visit the web site: www.wesc.ca or
contact: Jim McQuarrie, President & CEO or Nick Pohorelic, CFO at (403)
266-0667. If you would like to receive future information releases by email
please provide your email address to firstname.lastname@example.org.