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CALGARY, Sept. 11, 2018 /CNW/ - AKITA Drilling Ltd. (TSX:AKT.A;TSX:AKT.B) and Xtreme Drilling Corp. (TSX:XDC) are pleased to announce that they have completed the previously announced plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta) pursuant to which AKITA acquired all of the issued and outstanding common shares of Xtreme (the "Xtreme Shares").
Pursuant to the Arrangement, AKITA issued 21,662,530 Class A Non-Voting Shares of AKITA and $45,000,000 in cash in consideration for the Xtreme Shares. The cash consideration was financed from AKITA's cash balances and new credit facility of $125 million which was entered into by AKITA with ATB Financial concurrently with the completion of the Arrangement.
As of the date of this press release, there is a total of 37,954,407 Class A Non-Voting Shares of AKITA issued and outstanding.
Douglas Dafoe, the Chairman of Xtreme, was appointed to the AKITA board of directors upon closing of the Arrangement.
All amounts are stated in Canadian dollars unless otherwise noted.
This press release contains certain forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "potential", "intend", "focus", "estimate", "expect", "may", "will", "could", "should", or similar words suggesting future outcomes.
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by AKITA and Xtreme relating to prevailing commodity prices, the demand for drilling rigs and other oilfield services and the continued availability of capital and skilled personnel. Although AKITA and Xtreme consider these assumptions to be reasonable based on information currently available, undue reliance should not be placed on the forward-looking statements because AKITA and Xtreme can give no assurance that they may prove to be correct.
By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and AKITA and Xtreme do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE AKITA Drilling Ltd.
For further information: Mr. Darcy Reynolds, Vice President, Finance and Chief Financial Officer, (403) 292-7530