Receives final Exchange acceptance to secure 100% of the intellectual property related to breakthrough water treatment technology
Announces appointment of two executives to the Board of Directors
CALGARY, Jan. 5, 2012 /CNW/ - Ridgeline Energy Services Inc. (TSX-V: RLE) (OTCQX: RGDEF) ("Ridgeline" or the "Company"), an energy services technology and consulting company focused on waste management in the oil and gas industry, announces that it has met all necessary regulatory conditions for the previously announced (April 20, 2011) acquisition of Danzik Hydrological Sciences, LLC ("DHS") pursuant to a Purchase Agreement dated April 4, 2011, as amended, and has closed the transaction effective December 27, 2011, and has received final acceptance from the TSX Venture Exchange ("TSX-V").
DHS holds the worldwide rights to certain intellectual property (IP) developed by Dennis M. Danzik, an inventor resident in the U.S.A. DHS also holds a 50% interest in the Eau Claire Partnership, a partnership between DHS and Ridgeline Eau Claire Inc., a wholly owned subsidiary of Ridgeline. Ridgeline now owns the exclusive rights to the IP on a worldwide basis and owns 100% of the Eau Claire Partnership.
In connection with the transaction, the Company has issued 34,581,743 common shares to Dennis M. Danzik as the sole member of DHS. As a result, Mr. Danzik now holds approximately 36% of the issued and outstanding common shares of the Company on an undiluted basis and is considered to be both an insider and a control person of the Company (as those terms are defined under applicable securities laws).
In accordance with the policies of the TSX-V, shareholders of Ridgeline holding more than 50% of the issued and outstanding common shares of the Company have consented to the acquisition of DHS and the change of control resulting from the issuance of common shares to Mr. Danzik as consideration for the acquisition.
Tony Ker, CEO of Ridgeline commented, "We are pleased to announce completion of this important acquisition. We believe our water treatment technology will be of major benefit to the oil and gas industry by cost effectively addressing environmental issues that have beset the industry. Since we began our evaluation of the technology in 2009, we have completed thorough third-party testing and, most recently, we have commenced deployment of our commercial technology with several leading North American oil and gas companies."
Mr. Ker continued, "Customer response to our water treatment technology has been positive. Most notably, our customers have cited our ability to effectively remove contaminants from oil and gas production waste water at a low cost. As a result, we are able to reduce water treatment costs for our customers, making water treatment not only a viable economic alternative to down-hole disposal, but in many cases a more attractive alternative. Our customers can now recycle and reuse treated water, reducing trucking and water acquisition and disposal costs."
Mr. Ker concluded, "Over the past two years, we have worked closely with Mr. Danzik and the team from Danzik Applied Sciences LLC. We look forward to working with them further on the commercial roll out of our technology. Given our history together and strong working relationship, I am very confident in a rapid and seamless transition as we enter the next phase of our growth."
Dennis Danzik, commented, "With the acquisition now complete, our primary focus is on rapid commercial deployment of the technology. In addition, we plan to file key patents around certain core aspects of the technology. The advantage of our electro-catalytic process comes from our ability to crack water at the sub-molecular level and use very low levels of energy to cost effectively separate water from the contaminants. I look forward to contributing to the growth and success of our combined organizations."
Pursuant to the provisions of the Purchase Agreement, Ridgeline has appointed two nominees of Mr. Danzik's to its Board of Directors, which appointments remain subject to regulatory approval. Ridgeline would like to welcome Mr. Richard Gagnon and Mr. Richard Carrigan as directors of the Company.
Mr. Gagnon brings 25 years of experience in corporate development, strategic marketing, sales and operations. Currently President of Aerospace Research Ltd., he serves in a mergers and acquisitions advisory capacity for several multi-billion dollar private equity firms, where he participates in business development, mergers and acquisitions, drawing from an extensive network that includes Fortune 200 companies. A graduate of Boston College, Mr. Gagnon has held senior management, sales and marketing positions at Varo Corporation, Imrex Company, Inc., Electro Design Manufacturing, Inc., Sun Chemical Corporation, and Lockheed / Sanders.
Mr. Carrigan is a seasoned entrepreneur and an active investor in the alternative energy field, focusing on wastewater technologies. Mr. Carrigan has specialized in discovering emerging proprietary technologies, leading their development for commercial use and personally directing corporate acquisitions, operations and marketing strategies. Prior to that, Mr. Carrigan was founder of several successful business ventures including Grant Enterprises, LLC, which provided innovative new products and revenue streams for resort casinos in Las Vegas, as well as Eastern Services Group, Inc., which provided financial consulting services to clients in the gaming industry. Mr. Carrigan holds a BS in business finance and accounting from the University of Pittsburgh. He earned his MBA from the Katz School of Business at the University of Pittsburgh.
Carrigan and Gagnon replace Robert Raymond and Tyler Heathcote who have resigned from the Board which maintains the current board composition at six members. Ridgeline wishes to thank Messrs. Raymond and Heathcote for their efforts and contributions to the Company in their role as directors. Mr. Heathcote will continue in his position as President of Ridgeline.
"Both Richard Gagnon and Richard Carrigan are highly valued additions to our Board of Directors," stated Tony Ker, CEO of Ridgeline. "Richard Gagnon's experience in business development and strategic acquisitions coupled with Richard Carrigan's background in successfully commercializing emerging technologies in the alternative energy field will be invaluable to Ridgeline's success in achieving our future milestones. I would like to thank Robert Raymond and Tyler Heathcote for their efforts and contributions to the Company in their role as directors and look forward to Tyler's ongoing involvement as President of Ridgeline."
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is an energy services technology and consulting company focused on waste management in the oil and gas industry. Through its subsidiary Ridgeline Water Inc., the Company is applying proprietary technology to treat the large volumes of contaminated water generated by oil and gas production. The Company is working with energy majors in the application of its technology for the recycle and reuse of; produced and hydraulic fracturing water; enhanced recovery chemical flood water; and oil sands process water. As well, the Company is utilising its technology in the testing and treatment of commercial and industrial waste water. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established provider of environmental services to North America's oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Additional information is available on the Company's website at: www.ridgelinecanada.com.
"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."
ON BEHALF OF THE BOARD OF DIRECTORS
Tony Ker, CEO
For further information:
Ryan Johnson of Ridgeline Energy Services Inc.
(604) 566-8066 ext. 3 (Vancouver)
David Waldman at Crescendo Communications
(212) 671-1021 (New York)