Lonestar Closes Financing

Lonestar Closes Financing
  
 

SYLVAN LAKE, ALBERTA--(Marketwired - Jun 13, 2014) - Lonestar West Inc. (TSX-VENTURE:LSI) ("Lonestar" or the "Company") is pleased to announce that it has closed its previously announced bought deal financing (the "Offering") of 6,061,000 common shares ("Common Shares") of the Company at a price of $3.30 per Common Share for aggregate gross proceeds of $20,001,300. The Offering was underwritten by a syndicate of underwriters co-led by National Bank Financial Inc. and Clarus Securities Inc. and including Industrial Alliance Securities Inc. (collectively, the "Underwriters").

In connection with the Offering, the Company paid a cash commission of an aggregate of $839,405 to the Underwriters. The Company intends to use the net proceeds of the Offering to purchase additional HVAC and vacuum trucks, to finance strategic acquisitions and for general corporate purposes. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

Certain directors of the Company acquired, directly or indirectly, an aggregate of 90,000 Common Shares in the Offering. The participation of such directors in the Offering constitutes a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the formal valuation and minority approval requirements of MI 61-101 in reliance on Sections 5.5(b) and Sections 5.7(b), respectively, of MI 61-101.

James Horvath, President and CEO, stated "The closing of this Offering provides Lonestar with a strong balance sheet and allows it to continue its aggressive fleet expansion and acquisition program."

About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar (www.lonestarwest.com) operates a fleet of 91 HVAC and vacuum trucks throughout Western Canada and the United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.

For more information please visit the Lonestar website at www.lonestarwest.com.

NEITHER THE TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Forward Looking Information

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "intend", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. In particular, forward-looking statements contained in this press release include, but are not limited to the anticipated use of net proceeds of the Offering. These forward-looking statements are based on assumptions and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, competition, stock market volatility and the ability to access sufficient capital. Actual future results may differ materially. The Company's short-form prospectus filed in connection with the Offering and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Lonestar West Inc.James HorvathPresident & [e-mail] Howard Group Inc.Investor RelationsJeff Walker(888) 221-0915 or (403) [e-mail]