Mr. Tony Ker reports
RIDGELINE COMPLETES $10 MILLION BOUGHT DEAL FINANCING
ANNOUNCES EXERCISE OF $1.5 MILLION OVER-ALLOTMENT OPTION
Ridgeline Energy Services Inc. has completed its previously announced bought-deal financing conducted by way of a short form prospectus offering. Ridgeline, through a syndicate of underwriters led by Mackie Research Capital Corp. and including Industrial Alliance Securities Inc., issued 16,428,900 common shares of the company at a price of 70 cents per common share, including 2,142,900 common shares pursuant to the exercise in full by the underwriters of the overallotment option by the underwriters in connection with the offering, for aggregate gross proceeds of $11,500,230.
The net proceeds received by the company will be used for facility installations, acquisitions, development and working capital. In particular, Ridgeline intends to complete and enhance the acquisition of the Santa Fe Springs water treatment facility in California and to build water treatment units (known as single-train commercial installations or STCIs) for the recently signed water treatment agreement with Kerr Energy of Fort Worth, Tex.
"We are pleased to have completed this financing under such challenging market conditions. The company is now sufficiently funded to execute the next phase of our growth strategy," said Ridgeline's chief executive officer, Tony Ker. "The funds raised will be applied to initiatives expected to quickly and profitably demonstrate our ability to treat waste water in volume, whether at Santa Fe Springs or with partners such as Kerr Energy, whose customers' growing needs for water treatment will be met through the addition of our STCIs at Kerr's facilities."
Scott Havrisik, vice-president Ridgeline United States, believes that the Santa Fe Springs facility will be a significant contributor to Ridgeline's growth in the current fiscal year. "Under previous management the facility had more than 100 clients despite its limited capabilities for waste water treatment. Current demand from the existing customer base exceeds the water treatment capacity -- expanding our facility here is my top priority."
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