Canexus announces offering common shares

Canexus announces offering of common shares

6:09 AM, 3rd December 2012
Canexus announces offering of common shares
Gary Kubera, President and CEO, Canexus.

CALGARY, CANADA: Canexus Corporation has entered into a ‘bought deal’ financing agreement with a syndicate of underwriters, led by Scotia Capital Inc, under which the underwriters have agreed to purchase from Canexus and sell to the public 9,500,000 common shares at a purchase price of $7.90 per common share (offering price), for gross proceeds of $75,050,000 (offering). Canexus has also granted the underwriters an over-allotment option to purchase up to a further 1,425,000 common shares at the offering price, solely to cover their over-allocation position, if any.

The over-allotment option will be exercisable in whole or in part, at the sole discretion of the underwriters, until 30 days following the closing of the offering. If the over-allotment option is exercised in full, the gross proceeds raised pursuant to the offering will be $86,307,500.

The net proceeds of the offering will be used for expansion of capabilities at the North American Terminal Operation (NATO) at Bruderheim, Alberta and to fund other ongoing growth initiatives, including the hydrochloric acid expansions at North Vancouver. The Corporation expects this next phase of NATO expansion, if fully approved, to be accretive to all common shareholders after considering the offering announced.

“We are pleased to announce continued progress on the expansion of our Bruderheim terminal capabilities to include pipeline connected unit train operations for large scale movements of bitumen blend and diluent by rail. Sufficient progress on multiple potential pipeline/terminal connections and negotiations with customers for unit train shipments at Bruderheim under multi-year, take-or-pay terms, along with robust market drivers, gives us the confidence to continue to advance this project,” said Gary Kubera, President and CEO, Canexus.

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