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.
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