CALGARY, AB and SCOTTSDALE, AZ, May 20, 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 provides the following update regarding the Santa Fe Springs acquisition from Lakeland Processing Company, LLC and Lakeland Development Company (collectively "Lakeland").
On April 5, 2013 Ridgeline completed the transactions under an Asset Purchase Agreement dated April 9, 2012, as amended, between Ridgeline Energy Services (USA), Inc. a subsidiary of the Company, Lake Processing Company, LLC and Lakeland Development Company, and Purchase Agreement dated effective January 25, 2013 between Ridgeline Energy Services (USA) Inc. and Lakeland Development Company.
Under the Asset Purchase Agreement, Ridgeline acquired the assets of an industrial water treatment facility located in Santa Fe Spring, California. The purchase price for the assets was $3,000,000, of which $2,000,000 was paid in cash and the balance was paid through the issuance of 2,469,136 common shares at a deemed price of $0.405 per share which were issued to Lakeland Development Company.
Under the Purchase Agreement, Ridgeline acquired an 18 acre parcel of land on which the water treatment facility is located. The purchase price for the lands was $13,000,000. At closing, Ridgeline paid $3,500,000 in cash, issued a two year 5% unsecured $392,857 promissory note and issued 1,571,429 common shares at a deemed price of $0.70. Ridgeline also assumed $2,582,143 of liabilities from Lakeland.
The balance of the purchase price is to be paid through installments of 1,550,000 common on the 3rd, 6th, 9th, 12th and 15th months following closing. These common share installments will be held in escrow pending the receipt of the land reclamation funds by Lakeland and paid to Ridgeline for remediation of the purchased lands.
If the common shares issued under the installments are at a market price less than $0.70, then Ridgeline will issue a two year 5% promissory note for the difference between the market price and $0.70.
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". Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis Danzik "
"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:
David Waldman at Crescendo Communications
(212) 671-1021 (New York)
604 566 8066 ext 1