Grande West increases bought deal to $12.02-million

2017-02-08 11:38 ET - News Release

Mr. John LaGourgue reports
GRANDE WEST ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED BOUGHT DEAL OFFERING

Grande West Transportation Group Inc. has amended the terms of its previously announced bought deal offering of common shares of the company. Under the amended terms of the offering (as defined as follows), Beacon Securities Ltd., on its own behalf and on behalf of a syndicate of underwriters, has agreed to purchase, on a bought deal basis, 6.33 million offered shares of the company at a price of $1.90 per offered share for aggregate gross proceeds to the company of $12,027,000.

In addition, under the amended terms of the Offering, the Company has granted the Underwriters an option (the "Underwriters' Option), exercisable, in whole or in part by Beacon, on behalf of the Underwriters, giving notice to the Company at any time up to 48 hours prior to the Closing Date (as defined below), to purchase up to an additional 870,000 Offered Shares at the Issue Price for additional gross proceeds of up to $1,653,000. In the event the Underwriters' Option is exercised in full, the aggregate gross proceeds of the Offering will be $13,680,000.

The net proceeds from the Offering will be used for working capital and general corporate purposes. The completion of the Offering is expected to occur on or about March 2, 2017 (the "Closing Date") and is subject to the completion of formal documentation and receipt of applicable regulatory approvals, including the approval of the TSX Venture Exchange ("TSX-V"). All securities issued in connection with the Offering will be subject to a four month hold period from the Closing Date in accordance with applicable Canadian securities laws.

The Offered Shares will be offered on a private placement basis in each of the provinces of Canada and may be offered in the United States on a private placement basis pursuant to an exemption from registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and such other jurisdictions as may be agreed upon by the Company and the Underwriters.

About Grande West Transportation Group
Grande West Transportation Group is a Canadian bus manufacturer which designs, engineers and manufactures mid-size buses for transit authorities and commercial enterprises. Grande West's Best-in-Class Vicinity bus is available in 27.5, 30 and 35 foot models powered by clean diesel or CNG designed with affordability, accessibility and global responsibility in mind. It costs significantly less than a regular 40 foot transit bus, burns less fuel and emits less harmful emissions.
The Company has been successful in supplying Canadian municipal transportation agencies and private operators with new buses and is receiving follow-on orders in many Canadian transit agencies. Grande West is Buy America certified and along with ABG, its exclusive US distributor, is actively pursuing opportunities to sell Vicinity into public and private transit fleet operations.
We seek Safe Harbor.