CALGARY, Nov. 23, 2017 /CNW/ - Source Energy Services Ltd. ("Source" or the "Company") announces that James McMahon has entered into an automatic securities disposition plan.
Source announced today that James McMahon, a director of the Company has entered into an automatic securities disposition plan ("ASDP") in accordance with applicable Canadian provincial securities legislation, including the guidance under the Ontario Securities Commission's Staff Notice 55-701. The objective of the ASDP is to facilitate the sale of up to 170,000 common shares of Source held by James McMahon during the term of the ASDP from November 17, 2017 to February 17, 2018. These shares represent approximately 2% of the total common shares under Mr. McMahon's control. Among other things, the ASDP provides that no trades will start until after December 17, 2017 and that trades are subject to the minimum price threshold as specified in the ASDP.
Generally, Canadian securities legislation permits an insider to adopt a written ASDP to sell shares through an independent broker in accordance with a pre-arranged set of instructions, regardless of any subsequent material non-public information the insider may receive, as long as the ASDP satisfies certain requirements. In accordance with Canadian securities legislation, sales of shares under the ASDP will be effected by an independent securities broker in accordance with the trading parameters and other instructions set out in the ASDP. Mr. McMahon will not exercise any further discretion or influence over how dispositions will occur under the ASDP and the broker administering the ASDP is not permitted to consult with Mr. McMahon regarding any such dispositions. In addition, Mr. McMahon is subject to restrictions on his ability to modify, suspend or terminate his participation in the ASDP. In accordance with best practices, the ASDP includes a waiting period of 30 days between the date of adoption of the ASDP and the date the first disposition can be made under the ASDP. Dispositions pursuant to the ASDP will be reported on SEDI on an annual basis by no later than March 31 of each calendar year for all dispositions during the prior calendar year.
Source recognizes that insiders may have reasons unrelated to their assessment of the Company or its prospects in deciding to sell shares of the Company. Source also recognizes that many of its directors and officers have a substantial portion of their personal net worth represented by shares of Source and that such individuals are subject to lengthy restrictions on their ability to effect trades in Source's shares because of trading blackouts imposed under the Company's Policy on Trading in Securities. The ASDP entered into by Mr. McMahon is intended to provide an orderly mechanism for Mr. McMahon to diversify his portfolio.
ABOUT SOURCE ENERGY SERVICES
Source is a fully integrated producer, supplier and distributer of high quality Northern White frac sand primarily to the WCSB. Source provides its customers with a full end-to-end solution through its Wisconsin mine, processing facilities, rail assets, strategically located terminal network and "last mile" logistics operations. In addition, Source provides storage and logistics services for other bulk oil and gas well completion materials that are not produced by Source. Source's full service approach allows customers to rely on its logistics capabilities to increase reliability of supply and to ensure the timely delivery of their growing requirements for frac sand and other bulk completion materials.
SOURCE Source Energy Services
For further information: Source Energy Services Ltd., Brad Thomson, Chief Executive Officer, (403) 262-1312 (ext. 225); Derren Newell, Chief Financial Officer, (403) 262-1312 (ext. 233)