Symbol: LSI (TSX.V)
SYLVAN LAKE, AB, April 1, 2013 /CNW/ - Lonestar West Inc. (TSX.V: LSI) ("Lonestar" or the "Company") a premier provider of Hydrovac and Vacuum truck services is pleased to announce that it has acquired 100% interest in PLJ Enterprises, LLC ("PLJ"), an Oklahoma, USA based Hydrovac and Vacuum truck service provider.
PLJ started operations in 2010 and is currently operating a fleet of 2 Hydrovac and 2 Vacuum trucks out of their base in Elk City, Oklahoma. Lonestar has entered into employment agreements with key members of management, which is expected to provide for a seamless integration. The acquisition is expected to immediately add US$2.5 million in annual revenues, and bring Lonestar's growing fleet to 50 units.
"The acquisition of PLJ is in line with our growth strategy of expanding into the USA and growing our fleet. PLJ has no geographical overlap with Lonestar and the acquisition will be beneficial in expanding our customer base and reducing the seasonality of Lonestar's underlying business as the Oklahoma market is not affected by the weather conditions faced by our Canadian locations." said James Horvath, CEO of Lonestar.
In consideration of the acquisition of all of the issued and outstanding Units of PLJ, the Corporation paid $900,000 cash on closing, issued a $600,000 unsecured promissory note (the "Note") and issued 40,000 common shares of the Company at a price of $2.50 per share or $100,000 in the aggregate. The Note bears interest at the rate of 1.7% per annum and becomes due and payable in full on March 29, 2016.
The Company also announced that it has granted 20,000 incentive stock options of the Company to two employees for a total of 40,000 options under its Stock Option Plan. All options are exercisable at $2.50 per common share and expire on March 29, 2018.
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar West Inc. (www.lonestarwest.com) operates a fleet of 50 HVAC and vacuum trucks throughout Western Canada and recently expanded into California and Oklahoma. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
For more information please visit the Lonestar West website at www.lonestarwest.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE: Lonestar West Inc.
For further information:
President & CEO
Investor Relations, The Howard Group Inc.
Jeff Walker (888) 221-0915
[email protected] (403) 221-0915