Canadian Energy Services & Technology Corp. Announces $80.0 Million Equity Offering

CALGARY, ALBERTA--(Marketwired - May 18, 2016) -

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Canadian Energy Services & Technology Corp. ("CESTC") (TSX:CEU)(OTCQX:CESDF) is pleased to announce that it has entered into an agreement to sell, on a bought deal basis, to a syndicate of underwriters, 26,670,000 common shares at $3.00 per common share for gross proceeds of approximately $80.0 million (the "Offering"). The syndicate of underwriters will have an option to purchase up to an additional 4,000,500 common shares at a price of $3.00 per common share, exercisable in whole or in part at any time up to the 30^th day following the closing of the Offering. The syndicate of underwriters is led by Scotiabank and includes RBC Capital Markets, AltaCorp Capital Inc., Peters & Co. Limited, Wells Fargo Securities Canada, Ltd., Canaccord Genuity Corp., Raymond James Ltd., Clarus Securities Inc. and Cormark Securities Inc.

The net proceeds of the Offering are expected to be used to fund future acquisitions and growth objectives, and for general corporate purposes.

Tom Simons, President and Chief Executive Officer of CESTC, stated that "This financing bolsters our strong financial position, provides ample liquidity, and uniquely positions CESTC to effectively act on future opportunities that may arise in the current environment. We remain committed to pursuing potential opportunities that are aligned with our long-term business objectives while maintaining a prudent capital structure."

The Offering will be completed by way of short form prospectus in all provinces of Canada except Québec, and on a private placement basis in certain other jurisdictions outside Canada, and is expected to close on or about June 8, 2016, subject to satisfaction of certain customary conditions, including regulatory and stock exchange approvals. The common shares issuable pursuant to the Offering, including any shares issued pursuant to the exercise of the over-allotment option, will not be entitled to receive the $0.0025 dividend declared by CESTC on May 12, 2016, with a record date of May 31, 2016, but will be entitled to receive future dividends with a record date that occurs after the date of issuance of such common shares.