ANNOUNCES EXERCISE OF $1.5 MILLION OVER-ALLOTMENT OPTION
CALGARY, June 13, 2012 /PRNewswire/ - Ridgeline Energy Services Inc. (TSX-V: RLE; OTCQX: RGDEF) ("Ridgeline" or the "Company"), an energy services and water treatment company, is pleased to announce that it has completed its previously announced bought deal financing conducted by way of a short form prospectus offering in Canada and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act") (the "Offering"). Ridgeline, through a syndicate of underwriters (collectively, the "Underwriters"), issued 16,428,900 common shares of the Company at a price of $0.70 per common share, including 2,142,900 common shares pursuant to the exercise in full by the Underwriters of the over-allotment option by the Underwriters in connection with the Offering, for aggregate gross proceeds of $11,500,230.
The net proceeds received by the Company will be used for facility installations, acquisitions, development and working capital. In particular, Ridgeline intends to complete and enhance the acquisition of the Santa Fe Springs water treatment facility in California, and to build water treatment units (known as Single Train Commercial Installations or STCIs) for the recently signed water treatment agreement with Kerr Energy of Fort Worth, Texas.
"We are pleased to have completed this financing under such challenging market conditions. The company is now sufficiently funded to execute the next phase of our growth strategy," said Ridgeline's Chief Executive Officer, Tony Ker. "The funds raised will be applied to initiatives expected to quickly and profitably demonstrate our ability to treat waste water in volume, whether at Santa Fe Springs or with partners such as Kerr Energy, whose customers' growing needs for water treatment will be met through the addition of our STCIs at Kerr's facilities."
Scott Havrisik, Vice President Ridgeline USA, believes that the Santa Fe Springs facility will be a significant contributor to Ridgeline's growth in the current fiscal year. "Under previous management the facility had more than 100 clients despite its limited capabilities for waste water treatment. Current demand from the existing customer base exceeds the water treatment capacity—expanding our facility here is my top priority."
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the U.S. Securities Act, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons," as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is an energy services and water treatment company. Through its subsidiary Ridgeline Water Inc., the Company is applying proprietary technology to treat contaminated water generated by oil and gas production as well as waste water produced through other industrial and commercial processes. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established provider of environmental services to North America's oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Neither 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 accuracy of this news release. This news release may contain forward-looking statements or forward looking information for the purposes of applicable securities laws. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "believe", "plan", and similar expressions to the extent they relate to the Company or its management. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Such statements include but are not limited to statements about the use of proceeds from the financing and the capital requirements of the Company. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements."
SOURCE Ridgeline Energy Services Inc.