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LEDUC, AB, April 29, 2019 /CNW/ - Hyduke Energy Services Inc. ("Hyduke" or the "Company") announces that, further to the Company's press releases of March 18, 2019, April 4, 2019 and April 15, 2019, the Company is providing this bi-weekly default status report in accordance with National Policy 12 203 Management Cease Trade Orders ("NP 12-203").
On March 18, 2019, the Company announced that it would delay the filing of its annual audited financial statements for the year ended December 31, 2018, its related management's discussion and analysis, its annual information form for the year ended December 31, 2018, and the Chief Executive Officer and Chief Financial Officer certifications (collectively, the "Required Filings") past the prescribed deadline of March 31, 2019.
The Company was granted a management cease trade order ("MCTO") by the Alberta Securities Commission, its principal regulator, on April 2, 2019. Hyduke has until May 31, 2019 to file the Required Filings. Pursuant to NP 12-203, Hyduke must file bi-weekly default status reports in the form of a news release during the period of the MCTO. Failure to file the Required Filings by May 31, 2019 or the bi-weekly default status reports will result in the issuance of a general cease trade order.
The Company intends to file the Required Filings upon payment of its outstanding audit fees from the Company's 2017 financial audit. The Company expects to be in a position to pay these fees in the near future.
Pursuant to the provisions of the alternative information guidelines specified in NP 12-203, the Corporation reports that since its April 15, 2019 bi-weekly default status report (the "Default Status Report"):
- Other than as disclosed below, there have been no material changes to the information contained in the Default Status Report that would reasonably be expected to be material to an investor:
On April 18, 2019, the Company announced that, effective April 16, 2019, the Company had completed the sale of its head office building (including the manufacturing facility) located in Nisku, AB and that Hyduke's head office had been relocated to #100, 3903 - 75 Avenue, Leduc, Alberta, T9E 0K3. The net proceeds of the sale will be used to pay all of the Company's secured creditors.
On April 18, 2019, the Company announced that, as previously reported on February 8, 2019, B.W. Rig Supply Inc. ("B.W. Rig"), a wholly-owned subsidiary of Hyduke, filed with the Office of the Superintendent of Bankruptcy a Notice of Intention to Make a Proposal ("Notice of Intention") pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada) (the "BIA") and Deloitte Restructuring Inc. was appointed as trustee in the proposal proceedings to assist B.W. Rig in its restructuring efforts. The filing of the Notice of Intention had the effect of imposing an automatic 30-day stay of proceedings that protects B.W. Rig and its assets from the claims of creditors while B.W. Rig pursues its restructuring efforts. This 30-day period may be extended with the authorization of the Court of Queen's Bench of Alberta. On April 17, 2019, B.W. Rig filed with the Court of Queen's Bench of Alberta and was granted an extension to the stay of proceedings until June 7, 2019.
- There have been no failures by the Company to fulfill its stated intentions with respect to satisfying the provisions of the alternative information reporting guidelines under NP 12-203;
- There has not been, nor is there anticipated to be, any specified default subsequent to the default which is the subject of the Default Announcement; and
- There is no other material information respecting the Corporation's affairs that has not been generally disclosed.
The Company intends to comply with the provisions of the alternative information guidelines as set out in NP 12-203 for as long as it remains in default, by issuing bi-weekly default status reports, each of which will be issued in the form of a news release. The Company will also continue to disclose any other material information concerning its affairs and ongoing business activities.
Trading on the TSX under the symbol "HYD", Hyduke Energy Services Inc. is a supplier of equipment and services to the oil and gas drilling and well servicing industry.
Forward looking information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information relating to the expected filing of the Required Filings, one of the Company's wholly-owned subsidiaries filing an extension to a Notice of Intention to make a proposal pursuant to the Bankruptcy and Insolvency Act (Canada), the Company's compliance with alternative information guidelines, and the ability of the Company to pay its auditors.
These forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Assumptions have been made with respect to the ability of the Company to complete the filing of Required Filings, one of the Company's wholly-owned subsidiaries filing an extension to a Notice of Intention to make a proposal pursuant to the Bankruptcy and Insolvency Act (Canada), the Company's compliance with alternative information guidelines, and the ability of the Company to pay its auditors. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as the Company cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, insufficient funds being available to pay the Company's auditors. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Other risk factors that could affect the Company's operations or financial results are included in the Company's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.
The TSX has neither reviewed nor approved this release.
SOURCE Hyduke Energy Services Inc.
For further information: Pat Ross, President and Chief Executive Officer, Tel 403 528 1095 or Nick Cristiano, Chief Financial Officer, Tel 780 955 0355