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CALGARY, July 3, 2014 /CNW/ - Ceiba Energy Services Inc.
("Ceiba" or the "Company") (TSXV:CEB) is pleased to announce that
the Company has entered into an agreement under which a syndicate
co-led by Peters & Co. Limited and Clarus Securities Inc. and
including Canaccord Genuity Corp., Scotia Capital Inc. and Jennings
Capital Inc. (collectively, the "Underwriters") has agreed to buy
17,143,000 common shares of the Company (the "Common Shares") at a
price of C$0.70 per Common Share for
gross proceeds to the Company of C$12,000,100 (the "Offering").
The Offering is expected to close on or about July 24, 2014 (the "Closing Date"). The
Common Shares issued under the Offering will have a hold period of
four months plus one day.
The Offering is subject to the approval of the TSX Venture
Exchange. The Common Shares will be offered in the provinces of
Alberta, British Columbia, Saskatchewan, Manitoba and Ontario, and in such other jurisdictions where
the Common Shares can be issued on a private placement basis,
exempt from any prospectus, registration or other similar
requirements. The Common Shares may also be placed privately
in the United States with certain
qualified institutional buyers pursuant to Rule 144A of the
Securities Act of 1933 and with certain accredited institutional
investors under Regulation D.
The Underwriters shall be paid a cash fee equal to 5.5% of the
gross proceeds of the Offering. A reduced commission of 2.75%
shall apply to gross proceeds from subscriptions received from
certain investors identified by the Company.
Ceiba intends to use the net proceeds of the Offering to reduce
indebtedness, expand the capacity of existing facilities, advance
greenfield projects and for general working capital purposes.
The securities being offered have not, nor will they 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 U.S. registration or an applicable
exemption from the U.S. registration requirements. This release
does not constitute an offer for sale of securities in the United States.
About Ceiba Energy Services Inc.
Ceiba provides specialized services to the energy sector,
specifically to companies involved in the exploration, extraction
and production of oil and natural gas in under serviced market
space throughout Western Canada. Ceiba develops and
constructs facilities in proximity to its customers to provide
treatment of crude oil emulsion, terminalling, storage and
marketing of oil and disposal of production water.
Reader Advisory
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 the
accuracy of this release.
Forward-looking statements
Certain statements made herein may constitute forward-looking
statements. These statements relate to future events or the future
economic performance of Ceiba and carry known and unknown risks,
uncertainties and other factors that may appreciably affect their
results, economic performance or accomplishments when considered in
light of the content or implications to statements made by Ceiba.
Actual events or results could be significantly different.
Accordingly, investors should not place undue reliance on
forward-looking statements. Ceiba does not intend and undertakes no
obligation to update these forward-looking statements, except as
required under applicable securities laws.
SOURCE Ceiba Energy Services Inc.