CALGARY, ALBERTA--(Marketwire - July 5, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Black Diamond Group Limited ("Black Diamond") (TSX:BDI), a leading provider of modular accommodation and energy services in North America, is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the "Underwriters"), led by Raymond James Ltd. and including BMO Capital Markets, CIBC, Acumen Capital Finance Partners Limited, GMP Securities L.P., FirstEnergy Capital Corp., Cormark Securities Inc. and Peters & Co. Limited in connection with a "bought deal" common share financing by way of a short form prospectus of an aggregate of 2,500,000 common shares at a price of $22.15 per common share for aggregate gross proceeds of approximately $55.4 million. Black Diamond has also granted the Underwriters an over-allotment option to purchase up to an additional 250,000 common shares at a price of $22.15 per common share, for further gross proceeds of approximately $5.5 million, which would increase the offering to approximately $60.9 million if fully exercised.
Net proceeds of the financing will be used to fund an expanded 2012 capital expenditure program, initial capital expenditure commitments for the 2013 capital program, as Black Diamond continues to review and respond to customer driven demand, and for general corporate purposes.
The offering is subject to regulatory approval, including approval of the Toronto Stock Exchange and is expected to close on or about July 25, 2012.
ABOUT BLACK DIAMOND
Founded in 2003, Black Diamond Group Limited is one of North America's fastest growing remote lodging, modular building and energy services companies. With its corporate head office located in Calgary, Alberta, Black Diamond provides world-class services to a full spectrum of industries including oil and gas, mining, power, construction, engineering, military, government and education.
Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, BOXX Modular Inc. and through its 50% equity participation in the Black Diamond Dene Limited Partnership, Black Diamond West Moberly Limited Partnership and Black Diamond Nehiyawak Limited Partnership, Black Diamond operates four complementary divisions in thirteen strategic locations across Canada and the USA.
Black Diamond Camps rents and sells remote workforce housing and provides associated services; Black Diamond Logistics provides turnkey lodging services, remote facility management and supply chain solutions; BOXX Modular specializes in renting and selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a complement of oilfield equipment and services.
This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.
Advisory Respecting Forward-Looking Statements
Certain information in this news release contains forward-looking statements including the closing date of the offering and the use of proceeds of the offering. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Black Diamond's control including, without limitation, the risk that the equity offering will not be completed on the terms described or at all, the risk that Black Diamond will expend the net proceeds of the equity offering in a manner different than that indicated, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Black Diamond's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at Black Diamond's website (www.blackdiamondlimited.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.