CALGARY, May 10, 2018 /CNW/ - New West Energy Services
Inc. (TSX Venture: NWE), an oil and gas and environmental
services company focused on Western
Canada, today announced that NWE and its primary capital and
equipment financing partner, Nations Equipment Finance of
Norwalk, Connecticut, have come to
an agreement where Nations would acquire an equity stake in
NWE.
Under the terms of the agreement, NWE will issue to Nations
11,753,676 common shares in lieu of the repayment of $1,175,367.62 owing by NWE to Nations. NWE
will also replace certain three-year common share purchase warrants
currently held by Nations with five-year warrants on the same
terms.
Upon closing, Nations would hold approximately 27 percent
of NWE's outstanding common shares and, as such, would be a
"Control Person" under the policies of the TSX Venture Exchange
("TSXV"). In compliance with TSXV requirements, NWE has
already obtained the written consent of its shareholders holding
more than 50 percent of the company's outstanding common shares to
the creation of a new Control Person. NWE's largest
shareholder and Lead Director, William A.
Rand, would upon closing beneficially own 31 percent of
NWE's outstanding common shares.
Philip A. Carlson, President and
Chief Executive Officer of Nations commented: "Since completing our
initial $6 million financing of New
West in March 2017, we've been
increasingly impressed by the company's growth, particularly in the
completions and production sectors of the oil and gas
industry. Taking an equity position in the company speaks to
our confidence in New West's future prospects and we look forward
to working with management and the board to create significant
shareholder value."
Under the agreement, Nations will have observer status on the
NWE board of directors for so long as it beneficially owns more
than 15% of the outstanding common shares of NWE.
The closing of the agreement is subject to the approval of the
TSX Venture Exchange and all securities issued to Nations will be
subject to a hold period of four months and one day.
About Nations Equipment Finance
Nations was founded in September
2010 by former GE Capital equipment finance professionals.
Their team has collectively over 200 years of experience and
has worked together for nearly 20 years. During that time,
they have originated and managed multi-billion dollar portfolios of
equipment lease and term loan investments in various industries and
collateral types. Nations' head office is in Norwalk, Connecticut. For more
information see www.nationsequipmentfinance.com.
About New West Energy Services
NWE is a recognized leader in Western
Canada in comprehensive waste management and environmental
services, including transportation and disposal, in the drilling,
completions and production sectors of the oil and gas industry.
NWE management and senior operations personnel have
collectively over 100 years of experience in energy services and
have worked together for over 20 years. The company operates
through its main service centres in Grande Prairie and Medicine Hat, Alberta, and has its head office
in Calgary, Alberta. For
more information see www.newwestenergyservices.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.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this news release may constitute
"forward-looking information" within the meaning of applicable
securities laws that involve known and unknown risks, uncertainties
and other factors that may cause actual results, performance or
achievements or industry results to be materially different from
any future results, performance or achievements or industry results
expressed or implied by such forward-looking information and
financial outlook. Forward-looking information is identified
by the use of terms and phrases such as "anticipate", "believe",
"could", "estimate", "expect", "intend", "may", "plan", "predict",
"project", "will", "would", and similar terms and phrases,
including references to assumptions. More particularly, this
press release contains statements concerning the terms of the
proposed equity issuance to Nations, obtaining TSXV and regulatory
approvals and the closing of such transaction. The
forward-looking statements contained in this press release are
solely opinions and forecasts which are uncertain and subject to
risks. Forward-looking statements include but are not limited
to uncertainties and other factors which may cause the actual
results, performance or achievements of NWE to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements.
These forward-looking statements are not guarantees of future
performance and are subject to a number of known and unknown risks
and uncertainties. Accordingly, readers are cautioned that
the assumptions used in the preparation of the forward-looking
statements, although considered reasonable at the time of
preparation may prove to be imprecise and, as such undue reliance
should not be placed on forward-looking statements. The
forward-looking statements contained in this press release are made
as of the date of this press release. Except as required by
law, NWE disclaims any intention and assumes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Additionally, NWE undertakes no obligation to comment on the
expectations of, or statements made, by third parties in respect of
the matters disclosed in this press release.
SOURCE New West Energy Services Inc.
