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Ceiba Energy arranges $12-million bought deal financing

July 7, 2014

ENP Newswire - 07 July 2014

Release date- 04072014 - Ceiba Energy Services Inc. has entered into an agreement under which a syndicate co-led by Peters & Co. Ltd. and Clarus Securities Inc., including Canaccord Genuity Corp., Scotia Capital Inc. and Jennings Capital Inc., has agreed to buy 17,143,000 common shares of the company at a price of 70 cents per common share for gross proceeds to the company of $12,000,100.

The offering is expected to close on or about July 24, 2014. 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 per cent of the gross proceeds of the offering. A reduced commission of 2.75 per cent 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, to expand the capacity of existing facilities, to advance greenfield projects and for general working capital purposes.


Peter Cheung

Chief Financial Officer and Corporate Secretary

Ceiba Energy Services Inc.

Tel: 403-262-2783

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Source: ENP Newswire

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