Cathedral Energy Services Ltd. (TSX: CET) has closed its previously announced bought deal public offering of 11,500,000 common shares at $1.12 per share, which includes 1,500,000 common shares pursuant to the exercise in full of the over-allotment option, for gross proceeds of $12,880,000.
GMP FirstEnergy acted as sole underwriter for the offering.
Concurrent with the closing of the offering, certain directors and officers of Cathedral purchased a total of 1,116,071 common shares at a price of $1.12 per share on a private placement basis for gross proceeds of approximately $1,250,000. The gross proceeds from the offering and concurrent private placement totaled approximately $14,130,000.
Net proceeds will initially be used to repay bank indebtedness and then fund ongoing working capital requirements driven by increased business activity, increase capacity through funding equipment upgrades and capital expenditures, and for other general corporate purposes.
photo credit: Cathedral Energy Services