Enterprise Oilfield Group Inc (E)

[antman]

Enterprise Group arranges $6-million placement


2013-04-25 07:50 ET - News Release


Mr. Daniel Boase reports

ENTERPRISE GROUP, INC. ANNOUNCES PRIVATE PLACEMENT OF COMMON SHARES

Enterprise Group Inc. has entered into an agreement with a syndicate of agents lead by M Partners Inc., and including Beacon Securities Inc., to act as agents in respect of a best-efforts private placement offering of up to 12.5 million common shares of the company for gross proceeds of up to $6-million. Each common share will be issued at a price of 48 cents. All securities issued in connection with the offering will be subject to a hold period of four months and one day from the closing date.

The net proceeds of the offering will be used for capital expenditures related to Artic Therm International Ltd., acquisition and integration costs associated with the transaction announced Feb. 28, 2013, in the event of completion of that transaction, and for general working capital purposes.

The closing of the offering is subject to receipt by the company of all requisite regulatory approvals, including the approval of the Toronto Stock Exchange.

The closing of the offering is expected to occur on or about May 7, 2013, or such other date as agreed to by the agents and the company.

On the closing date the agents will receive, a cash commission equal to 6 per cent of the gross proceeds of the offering. In addition, the company will issue to the agents, on the closing date, such number of warrants as is equal to 6 per cent of the number of common shares sold pursuant to the offering. Each broker warrant will entitle the holder thereof to purchase one common share at the issue price at any time prior to the date that is 12 months from the closing date.

We seek Safe Harbor.