Element Financial Closes $87.1 Million Special Warrant Financing

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TORONTO, May 31, 2012 /CNW/ - Element Financial Corporation (TSX:EFN) ("Element"), one of Canada's leading independent equipment finance companies, announced that it has closed today its previously announced Special Warrant financing.

Element issued, on a private placement bought deal basis, 16,595,900 Special Warrants at a price of $5.25 per Special Warrant for gross proceeds of approximately $87.1 million. Each Special Warrant entitles the holder to receive, upon exercise or deemed exercise thereof, for no additional consideration, one Common Share in the capital of Element.

The Special Warrants will be exercisable by the holders thereof at any time following the closing of the Offering and all unexercised Special Warrants will be deemed to be exercised upon the earlier of: (i) the fifth business day after the date of issuance of a receipt for a final prospectus qualifying the issuance of Common Shares underlying the Special Warrants, and (ii) four months and one day following the closing of the Offering. Element has agreed to use commercially reasonable best efforts to file a prospectus qualifying the issuance of the Common Shares underlying the Special Warrants within 75 days of closing of the offering.

The net proceeds of the Offering will be used to fund Element's future growth and for general corporate purposes.

Steve Hudson, Element's Chairman and CEO stated: "We are very pleased to see the continuing support in the market and from investors for Element's business plan and growth objectives.  We remain on track to complete our acquisition of TLS/Transportaction by the end of June 2012."

The Offering was co-led by GMP Securities L.P, Barclays Capital Canada Inc. and BMO Capital Markets acting as Joint Bookrunners, and including RBC Capital Markets, CIBC World Markets Inc. and Scotia Capital Inc.

About Element Financial Corporation

Element Financial Corporation is an independent finance company that originates, manages and funds equipment leases. Element Financial Corporation operates in two specific segments of the equipment finance market through Element Capital, a business unit operating in the large ticket equipment leasing and Element Finance that, currently originates equipment finance assets within specific segments of the mid-ticket equipment finance market through its four specialized groups: manufacturing and industrial, transportation and construction, healthcare and golf equipment, each of which has national scope and coverage. Please visit www.elementfinancial.ca for more information.

Forward Looking Statements

This release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release, including the intended use of proceeds from the private placement, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the equipment finance industry, economic factors and the equity markets generally and many other factors beyond the control of Element. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Media Contact:

Gabrielle Collu
[email protected] 
[phone]

Patrick Gossage
[email protected] 
[phone]

Investor Contact:

Jim More
Senior Executive Vice President   
[phone] ext. 219
[email protected]