LEA.V - Leader announces closing of financing transaction. Also releases preliminary revenue of $26 million for 2010, which translates to $8.3 million for the Q4! Last time they announced a $8 mil plus quarter, they reported EPS of $0.15! Also noted that YTD 2011 revenues are coming in higher than expected. All in all great news! Thanks again to Hank for bringing this to our attention. I'm looking for $1.50 - $2.00 by mid April when earnings are released. Trading will resume at 12:00 EST, what does everyone expect?
Leader Energy Services Announces Closing of $15 Million Financing
CALGARY, ALBERTA--(Marketwire - Feb. 18, 2011) - Leader Energy Services Ltd. ("Leader" or the "Company") (TSX VENTURE:LEA - News) is pleased to announce that it has completed its previously announced three-year secured debt facility agreement in the principal amount of $15,000,000. The facility bears interest at an annual rate of 12% compounded and payable quarterly, and is repayable at any time without penalty subject to the approval of its senior lender. Under the terms of the financing, the lender was issued 4 million share purchase warrants exercisable at $0.65 for three years. Leader will use existing working capital and proceeds from the new facility to refinance its existing convertible debt.
As previously announced, Leader reached an agreement with holders of its 10% convertible subordinated debentures to repurchase 95.4% of the total amount outstanding. Leader issued $15,000,000 of debentures on February 28, 2007, of which $13,160,000 was outstanding as of January 25, 2011. The debentures were convertible at $0.40 per share and would have matured on March 31, 2012.
Leader will pay $12,560,000 of debenture principal plus $1,400,000 of deferred interest at 110% of face value, for a total of $15,356,000. Additionally the Company will pay interest owing per the debenture agreement up until February 18, 2011 totalling approximately $755,000. As of February 18, 2011, a total of $2,140,000 of debentures was converted to common shares of the Company.
Whitehorn Merchant Capital Inc. provided financial advisory services to Leader with regards to the new debt facility and in addition to cash compensation, received 250,000 share purchase warrants exercisable at $0.60 for two years.
Leader continues to experience robust demand for its services. Revenue for the year ended December 31, 2010 will approximate $26 million. In addition, revenue for the current year to date is higher than previously expected. In 2011, the Company is planning a modest capital expenditure program including new coiled tubing, nitrogen, and fluid pumping equipment. Leader anticipates releasing fiscal 2010 results during the third week of April 2011.
Further information can be found under the Company's listing at www.sedar.com and on the Company's website at www.leaderenergy.com. The number of common shares issued and outstanding at the date hereof is 18,698,000.
AI
