CALGARY, ALBERTA--(Marketwire - April 19, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Black Diamond Group Limited ("Black Diamond" or the "Company") (TSX:BDI), a leading provider of modular accommodation and energy services in North America, is pleased to announce a $40 million increase to its 2011 capital expenditure budget. This increase will bring the total 2011 capital expenditure budget of Black Diamond to approximately $80 million. The previously announced $40 million has been committed across all three of the Company's operating divisions. The capital expansion is required to meet customer-driven demand throughout the resource development sector for remote accommodation facilities and surface rental equipment in the Alberta oil sands and other emerging resource plays including the Horn River and Montney basins in northern British Columbia and the Bakken Formation in southern Saskatchewan and North Dakota. In addition, capital will be expended to fulfill project opportunities in the government and infrastructure sectors in the southern United States. Expenditures are expected to be dispersed in a generally non-speculative manner consistent with prior years.
In conjunction with this capital expansion Black Diamond has entered into an agreement with a syndicate of underwriters (the "Underwriters"), led by Raymond James Ltd. and including BMO Capital Markets, CIBC, GMP Securities L.P., Acumen Capital Finance Partners Limited, Cormark Securities Inc. and FirstEnergy Capital Corp., in connection with a "bought deal" common share financing by way of a short form prospectus of an aggregate of 1,800,000 common shares at a price of $26.10 per common share for aggregate gross proceeds of approximately $47 million. Black Diamond has also granted the Underwriters an over-allotment option to purchase up to an additional 180,000 common shares at a price of $26.10 per common share, for further gross proceeds of approximately $5 million, which would increase the offering to approximately $52 million if fully exercised. Net proceeds of the financing will be used to fund capital expenditures, as Black Diamond continues to review and respond to customer driven demand, repay bank indebtedness 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 May 10, 2011.
ABOUT BLACK DIAMOND
Founded in 2003, Alberta-based Black Diamond Group Limited is a leading provider of temporary and permanent modular building and energy services products. Through its wholly-owned subsidiaries, Black Diamond Limited Partnership, Nortex Modular Leasing and Construction Company and through its 50% equity participation in the Black Diamond Dene Limited Partnership and Black Diamond West Moberly Limited Partnership, Black Diamond operates three complementary divisions in thirteen strategic locations across Canada and USA.
Black Diamond Camps and Logistics rents and sells remote workforce housing and provides associated services; BOXX Modular specializes in renting or selling a broad range of modular work space solutions and Black Diamond Energy Services rents and sells a full complement of oilfield equipment and services. Black Diamond provides world-class services to a full spectrum of industries including oil, gas, mining, power, construction, engineering, military, government and education.
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 effect 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.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.