Aveda Transportation and Energy Services Inc. (TSX-V: AVE), a provider of oilfield hauling services and equipment rentals to the energy industry, has completed previously announced short form prospectus offering of 37,433,625 common shares at a price of $0.60 per share for gross proceeds of $22,460,175.00.
The offering was conducted by a syndicate of agents co-led by Beacon Securities Limited and Canaccord Genuity Corp and included PI Financial Corp. and Mackie Research Capital Corporation. Burstall Winger Zammit LLP and Cassels Brock & Blackwell LLP acted as legal counsels to Aveda and the underwriters respectively.
Werklund Capital Corporation and Werklund Ventures Limited participated in the offering in an aggregate amount of $4,000,020.00
As part of the offering, the principal sum and fees of the $5 million standby facility between Aveda and Werklund entities are now convertible into securities of Aveda at the offering price.
Aveda Transportation and Energy Services also closed its previously announced non-brokered private placement of 666,667 shares at the offering price for gross proceeds of $400,000.20.
Aveda intends to use the net proceeds to reduce indebtedness under its senior credit facility and for general working capital purposes.
Following completion of the offering and private placement, Aveda has 57,180,332 common shares issued and outstanding.
Entities controlled or associated with David Werklund will continue to own 25% of Aveda outstanding shares, not taking into account of the loan conversion.