CALGARY, ALBERTA–(Marketwired – June 28, 2017) – New West Energy Services Inc. (TSX VENTURE:NWE), an oil and gas and environmental services company focused on Western Canada, today announced the appointment of an executive chairman and lead director, a change in the company’s financial year-end and the granting of stock options.
APPOINTMENT OF EXECUTIVE CHAIRMAN AND LEAD DIRECTOR
NWE is pleased to announce the appointment of Mr. Erinn B. Broshko as a director and Executive Chairman of the company. In conjunction with Mr. Broshko’s appointment, NWE’s current Chairman, William A. Rand, has been appointed as Lead Director.
Mr. Broshko is the Managing Director of Rand Investments Ltd., a Vancouver-based private equity firm. Previous to that, Mr. Broshko was the Chief Executive Officer and then Executive Chairman of a publically-listed biotechnology company and a corporate and securities lawyer with a prominent Vancouver-based law firm.
Gerry E. Kerkhoff, President and Chief Executive Officer of NWE commented, “Erinn brings to New West eighteen years of corporate finance, public markets and transactions experience. With the oil and gas industry showing signs of recovery and New West’s improving results, Erinn will be a valuable member of the team as we seek to complete transactions of strategic importance to create significant shareholder value.”
Mr. Broshko stated, “I’m honoured to be joining Gerry and the New West team at this important time. The company has a long and trusted track record in oil and gas services throughout western Canada and has shown resilience through these challenging times for the industry. Since its $4.8 million equipment acquisition in early March, New West has been securing additional work in the completions and production sectors and expects increased utilization of the additional equipment.”
Mr. Broshko concluded, “With New West’s increased service capacity, our leadership will be looking to execute upon transformational transactions that are accretive and that increase our growth potential.”
CHANGE OF FINANCIAL YEAR-END
NWE announced that its board of directors has resolved to change its financial year-end from April 30 to December 31 to better conform with industry peers and to line up the company’s quarterly filings with more traditional quarters.
To facilitate the change, NWE will report a one-time transition year covering the eight months from May 1 to December 31. 2017. Subsequent to this transition year, NWE’s first full financial year will be January 1 to December 31, 2018.
For more details regarding the length and ending dates of the financial periods, including the comparative periods, of the interim and annual financial statements to be filed for NWE’s transition year and its new financial year, please refer to the company’s Notice of Change of Year End filed pursuant to National Instrument 51-102 and available under the company’s SEDAR profile at www.sedar.com.
GRANT OF STOCK OPTIONS
NWE announced that it granted to certain directors, officers and employees five-year incentive stock options to purchase an aggregate of 2,125,000 common shares at an exercise price of $0.13 per share, being the June 27, 2017 closing price of NWE’s common shares on the TSX Venture Exchange.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations or future actions. Forward-looking information in this news release includes, without limitation, statements with respect to: the use of proceeds of its loans; the use of the acquired equipment; planned changes in NWE’s business and revenues; the competitive environment in which NWE operates; and the assessment of future plans and operations. Actual events or results may differ materially. The forward-looking information in this news release is based on assumptions which includes, but is not limited to: NWE realizing the expected benefits of its loans and acquired equipment; the general state of the economy and the oil and gas industry not worsening; NWE not losing any key personnel; NWE sustaining or increasing their level of revenues and EBITDA; NWE growing its businesses long term and managing its growth; NWE complying with existing regulations and not becoming subject to more stringent regulations; and, NWE’s insurance being sufficient to cover losses that may occur as a result of its operations. The forward-looking information in this news release is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information.
The factors which could cause results to differ from current expectations include, but are not limited to: failure to realize the expected benefits of its loans and acquired equipment; potential undisclosed liens associated with the acquired equipment; NWE’s results being dependent upon the general state of the economy and the oil and gas industry; NWE being dependent on key personnel, the loss of which could harm its business; NWE may not be able to sustain or increase their revenues or EBITDA; NWE may be unable to grow its business long term or to manage any growth; NWE may be unable to integrate the acquired equipment into its business; competition in NWE’s markets may lead to reduced revenues and EBITDA; NWE may fail to comply with existing regulations or become subject to more stringent regulations; NWE’s insurance may be insufficient to cover losses that may occur as a result of NWE’s operations; the market price of NWE’s common shares will fluctuate; and, there is a possibility of dilution of existing holders of NWE’s common shares due to future financings or acquisitions. Although NWE has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements in this news release, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of the factors are beyond the control of NWE. Accordingly, readers should not place undue reliance on the forward-looking information in this news release. The forward-looking information is made as of the date of this news release, and NWE does not assume any obligation to publicly update or revise such forward-looking information to reflect new information, subsequent or otherwise, except as may be required by applicable law. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.
New West Energy Services Inc.
Gerry E. Kerkhoff
President & Chief Executive Officer
403.984.9798 or 1.888.977.2327 (BEAR)