Petrowest Corporation announces closing of bought deal offering

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CALGARY, April 27, 2016 /CNW/ - Petrowest Corporation (Petrowest) (TSX:PRW) announced today that it has completed its previously announced bought-deal offering, including the exercise in full of the underwriters' over-allotment option (the Offering). A total of 32,857,225 class A common shares (the Common Shares) have been issued at a price of $0.35 per share for aggregate gross proceeds of $11,500,028.75. Certain officers and directors of Petrowest participated in the Offering and purchased 9.3% of the Common Shares issued under the Offering.

The syndicate of underwriters was led by Beacon Securities Limited and Dundee Securities Ltd. and included Haywood Securities Inc., PI Financial Corp., Canaccord Genuity Corp., Mackie Research Capital Corporation and Cormark Securities Inc.

The net proceeds from the Offering will be used by Petrowest to reduce its corporate indebtedness under its amended and restated credit agreement dated March 31, 2016, with $4.75 million of the net proceeds from the Offering to be used to repay amounts owing under the revolving reducing term loan and the remaining amount of the net proceeds from the Offering to be used to repay amounts owing under the revolving credit facility. 

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

ABOUT PETROWEST

Petrowest is an Alberta corporation involved in both industrial and civil infrastructure projects, as well as predrilling and post-completion energy services, gravel crushing and hauling for non-energy sector customers. Petrowest's primary operations are based in northwestern Alberta and northeastern British Columbia.

SOURCE Petrowest Corporation

please contact Nikolaus Kiefer, Vice President of Business Development & Investor Relations at [phone] or info@petro‐west.com.