EDMONTON, June 9 /CNW/ - Wayne Rutherford, President and CEO of PowerComm
Inc. (PCG:TSX) announced today the company entered into a Letter of Intent
(LOI) to acquire all of the outstanding shares of Epscan Industries Ltd. of
Fort St. John, British Columbia. The transaction is conditional upon PowerComm
completing its Due Diligence and gaining Board of Directors and regulatory
"The acquisition of Epscan is a tremendous opportunity for PowerComm,"
said Wayne Rutherford. "Adding geographical representation in northeastern
British Columbia has been a large part of our planned growth strategy," he
"The growing activity levels in the area combined with the exciting
announcements around shale gas exploration and production provides PowerComm
the ability to become a major player in the area," he concluded.
Epscan is an electrical and instrumentation contractor based in Fort St.
John that services the entire northeastern BC market. They have recently
opened an office in Dawson Creek to handle the growing volume of business
generated by the tremendous expansion of activity resulting from the recent
growth of natural gas production as well as the 'shale gas' opportunities
developing in the region.
A majority of their revenue is derived from recurring relationships,
based upon strong client loyalty. Existing management has agreed to remain
with PowerComm to ensure continuity and generate continued growth.
"Epscan is very excited about the opportunities in the region," said Mr.
Don Stirling, the company's President. "We will now be able to expand our
offering of services to include valve servicing and the other components of
the PowerComm suite of services," he added. "Being part of a dynamic
organization like PowerComm will give us the additional infrastructure and
support to achieve significant growth in this exciting market," Mr. Stirling
"Epscan is expected to generate in excess of $14 million in revenue in
the coming year and has always been able to achieve solid profitability," said
Joe Huising, PowerComm's CFO. "The transaction is valued at a similar multiple
to previous acquisitions," he concluded.
As the transaction is conditional, complete terms are not disclosed,
except that the final purchase price will be paid with a combination of common
shares and cash. The transaction is expected to close in early August.
The news release contains certain forward-looking statements, including
management's assessment of future plans and operations and capital
expenditures and the timing thereof, that involve substantial known and
unknown risks and uncertainties, certain of which are beyond PowerComm Inc.'s
control. Such risks and uncertainties include, without limitation, risks
associated with the Corporation's ability to market successfully to current
and new customers; supply and demand for PowerComm Inc.'s services and
products and industry activity levels; capital expenditure programs;
projections of commodity prices and costs; the Corporation's ability to obtain
material and equipment from suppliers; operating risk liability; expansion of
services and products by internal growth or acquisition; the Corporation's
ability to obtain additional financing on satisfactory terms; the impact of
general economic and industry conditions; changes in laws and regulations
(including the adoption of new environmental laws and regulations) and changes
in how they are interpreted and enforced; competitive conditions; the lack of
availability of qualified personnel or management; fluctuations in foreign
exchange or interest rates, stock market volatility; and obtaining required
approvals of regulatory authorities. PowerComm Inc.'s actual results,
performance or achievements could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits, including the amount of proceeds, that PowerComm Inc. will
derive therefrom. Readers are cautioned that the foregoing list of factors is
not exhaustive. All subsequent forward-looking statements, whether written or
oral, attributable to PowerComm Inc. or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements.
Furthermore, the forward-looking statements contained in this news release are
made as of the date of this news release and PowerComm Inc. does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.
For further information:
For further information: Wayne R. Rutherford, President and Chief
Executive Officer or J.D. Snowdon, Executive Vice President Corporate Services
at (780) 465-7038 or at firstname.lastname@example.org