CALGARY, ALBERTA–(Marketwired – April 11, 2016) – NEW WEST ENERGY SERVICES INC. (TSX VENTURE:NWE) today announced that at the special meeting held on April 7, 2016, NWE shareholders overwhelmingly approved the previously announced proposed private placement financing and the creation of a new “control person” in William A. Rand, NWE’s Chairman.
At the meeting, 45.44% of the issued and outstanding common shares were represented. After excluding the votes attaching to the common shares held by Mr. Rand and the other NWE directors who are expected to participate in the proposed financing, 97.77% of the common shares represented at the meeting were voted in favour of proposed financing and creation of a new control person.
NWE President and Chief Executive Officer, Gerry E. Kerkhoff, commented: “We are very pleased that our shareholders have so strongly endorsed New West’s strategy of strengthening its balance sheet and positioning itself to create significant shareholder value when oil and gas prices rebound and field activity levels improve.”
“NWE has a long and trusted track record in oil and gas services throughout western Canada. These are very challenging times for the oil and gas industry but thanks to our strong customer base we have shown resilience and are following through on our focus of completing strategic acquisitions that provide additional service capacity, both in scale and geographic scope, to our current and future customers. While our core business will remain tied to drilling waste and water management, including transport and disposal, we intend to explore opportunities that would allow NWE to expand its service offering to a broader range of customers,” noted Mr. Kerkhoff.
Non-Brokered Private Placement Expected to Close Shortly
In order to strengthen its balance sheet, NWE previously announced that it intends to complete a non-brokered private placement financing of up to 33,333,333 common shares to be issued at a price of $0.03 per share for aggregate gross proceeds of up to $1,000,000.
The closing of the financing is subject to applicable regulatory approvals, including approval of the TSXV and is expected to close shortly. All common shares issued pursuant to the private placement will be subject to a hold period of four months and one day.
ABOUT NEW WEST ENERGY SERVICES
NWE management and operations personnel have over 20 years of experience in oil and gas services throughout western Canada. The company uses advanced technology and processes in drilling waste and water management, including transport and disposal. Through its subsidiaries, NWE services the drilling, completions and production sectors and operates a fleet of modern straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers. NWE is a recognized leader in comprehensive environmental services, with management contributing to the establishment of the first guidelines in Alberta for Landspray While Drilling. NWE’s main service centres are located in Beaverlodge and Medicine Hat, Alberta, and its head office is in Calgary, Alberta.
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 Statements and Information
Except for the statements of historical fact contained herein, certain information presented herein constitutes forward-looking statements and/or information. More particularly, this press release contains statements and information concerning the terms of the private placement, obtaining TSXV and regulatory approvals and the timing of closing. The forward-looking statements and information contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. Forward-looking statements and information 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 or information. Such forward-looking statements and information 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 assumption 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 and information.
The forward-looking statements and information 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 or information, 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.
New West Energy Services Inc.
Gerry E. Kerkhoff
President and Chief Executive Officer
403.984.9798 or 1.888.977.2327 (BEAR)