Sale is for CDN $ 7.347 Million
CALGARY, AB and SCOTTSDALE,AZ, July 19, 2013 /CNW/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) a technology driven company operating in the waste water industry announced the execution of an Definitive Purchase Agreement ("DA") to sell both of its Canadian Environmental Services and Greenfill business divisions to Ridgeline Canada, Inc. of Calgary.
Yesterday Ridgeline announced (subject to approval of the TSXV) the execution of the DA to sell ("Sale") all of its Canadian Environmental ("Consulting") and GreenFill soils treatment ("GreenFill") business divisions to Ridgeline Canada, Inc. (RCI) of Calgary. The DA includes both operating divisions based in Canada. The divisions known as Ridgeline Environment and Ridgeline GreenFill will be operated as a private company.
In addition to the term and conditions detailed yesterday, the Company wishes to further detail two facts; 1) The note executed for $ 2,500,000.00 in favor of the Company is a promissory note with straight amortization over 60 months beginning September 1st, and will carry an interest rate of six percent per annum (6%); 2) That the transaction is arms- length and that no director, officer, or insider of the Company is financially involved in the acquisition of the Canadian divisions by Ridgeline Canada, Inc.
The majority of employees within Ridgeline Environment and Ridgeline GreenFill have opted to stay with the new private company, Ridgeline Canada, Inc.
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is a technology driven water treatment company. The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Also traded on the FSE (Frankfurt) as "RL7". Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Dennis M Danzik
Dennis M Danzik
Director and Chief Executive Officer
"Neither 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 news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."
SOURCE: Ridgeline Energy Services Inc.
For further information:
Dennis M Danzik at Ridgeline Energy Services Inc.
Chief Executive Officer
[email protected] (Calgary and Scottsdale)
David Waldman at Crescendo Communications
(212) 671-1021 (New York)