Source Energy Services Ltd. (TSX:SHLE) (the "Company" or "Source") is pleased to announce that it has completed its previously announced initial public offering (the "Offering") of 16,666,667 common shares ("Common Shares") at a price of $10.50 per Common Share ("Offering Price") for aggregate gross proceeds of approximately $175 million.
The underwriting syndicate was co-led by Scotiabank, Morgan Stanley Canada Limited and BMO Capital Markets (the "Co-Lead Underwriters") and included CIBC Capital Markets, Goldman Sachs Canada Inc., Raymond James Ltd., RBC Capital Markets, Canaccord Genuity Corp., Altacorp Capital Inc., Cowen and Company, GMP FirstEnergy and Peters & Co. Ltd. (collectively, with the Co-Lead Underwriters, the "Underwriters").
The Company has granted to the Underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 2.5 million Common Shares at the Offering Price.
The Common Shares are listed on the Toronto Stock Exchange under the symbol "SHLE".
Following the Offering, the internal corporate reorganization and the shareholder loans settlement disclosed in Source's final long form prospectus dated April 6, 2017 (the "Prospectus"):(a) TriWest IV (as defined in the Prospectus) exercises control or direction over an aggregate of 15,377,191 Common Shares and 1,300,154 Class B Shares, representing approximately 31.18% of the issued and outstanding Common Shares and 100% of the issued and outstanding Class B Shares; and (b) Jim McMahon collectively with MFT 2 Family Trust and their affiliates (collectively, "McMahon") own or exercise control or direction over an aggregate of 8,240,503 Common Shares, representing approximately 16.71% of the issued and outstanding Common Shares.
Each of TriWest IV and McMahon acquired the Common Shares in connection with the internal corporate reorganization and the shareholder loans settlement mentioned above. Each of TriWest IV and McMahon hold the Common Shares for investment purposes and may, depending on market and other conditions, acquire additional Common Shares through market transactions, private agreements, treasury issuances, dividend reinvestment programs, exercise of options, convertible securities or otherwise, or may sell all or some portion of the Common Shares it owns or controls, or may continue to hold the Common Shares.
TriWest IV and McMahon have each filed early warning reports dated April 13, 2017 advising of these matters.
About the Company
Source is a fully integrated producer, supplier and distributer of high-quality Northern White frac sand primarily to the Western Canadian Sedimentary Basin. Source provides its customers with a full end-to-end solution through its Wisconsin mine assets, processing facilities, unit train capable rail assets, strategically located terminal network and "last mile" logistics capabilities. Source's full service approach allows customers to rely on its logistics capabilities to increase reliability of supply and to ensure the timely delivery of their growing frac sand requirements. In addition to its transload terminal network and in-basin storage capabilities, Source has also developed Sahara, a proprietary wellsite mobile sand storage and handling system.
SOURCE: Source Energy Services Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.