Business
Northern Frontier Corp. Provides Update on Proposed Public Offering of Subscription Receipts and the Proposed Acquisition of the NEC Group, an Industrial Energy Services Provider
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UN...
About this update from 55 North Mining Inc.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES/\n\n\nCALGARY, July 4, 2013 /CNW/ - Northern Frontier Corp. (TSX-V: FFF.P)\n (the \"Corporation\" or \"Northern Frontier\") would like to advise that it is continuing to pursue its proposed\n public offering of subscription receipts (\"Offering\") and proposed acquisition of 794522 Alberta Ltd. (\"Numberco\"), NEC Contractors (2012) Inc. (\"NEC\" and together with Numberco, the \"NEC Group\") and certain assets (\"Carve-out Assets\") of CRC Open Camp & Catering Ltd. (\"CRC\"), held by CRC and used in the NEC Group business (together with the\n transactions contemplated by the Share Purchase Agreement, the \"Acquisition\") as announced on April 23, 2013.\n\n\nThe NEC Group provides sustaining capital services to large industrial\n energy customers in the steam assisted gravity drainage (\"SAGD\") region of northeastern Alberta.  The NEC Group's head office and shop\n is located in Lac La Biche, Alberta and its field location is in\n Conklin, Alberta which is central to the substantial industrial energy\n production developments in the vicinity. The business focuses on the\n ongoing demand for services to support operating facilities, sustaining\n capital expenditures to maintain production levels of those facilities\n and the development of new production capacity.\n\n\nBased on unreviewed and unaudited financial figures prepared by\n management of the NEC Group, the NEC Group and CRC Carve-out Assets\n generated Q1 2013 revenue of approximately $19.0 million and pro forma\n adjusted earnings before interest, taxes, depreciation and amortization\n (\"Adjusted EBITDA\") of approximately $5.5 million (margin of 28.9%). This compares to\n $42.6 million in revenue and $11.2 million in pro forma Adjusted EBITDA\n (margin of 26.2%) for the twelve months of 2012.\n\n\nThe Corporation is in the process of updating the Preliminary Prospectus\n that it filed on April 23, 2013, to reflect the first quarter financial\n results of the Corporation, the NEC Group and CRC Carve-out Assets and\n related required financial information disclosure. Once complete, the\n Corporation intends on filing the Amended and Restated Preliminary\n Prospectus. The definitive date of filing has not been determined,\n however the Corporation is work...