Acquisition of the Business of Sonic Oilfield Services Ltd. Expands Vertex's Presence in Saskatchewan
SHERWOOD PARK, AB, Jan. 2, 2018 /CNW/ - (TSX.V:VTX) - Vertex Resource Group Ltd. ("Vertex") is pleased to announce that it has acquired the business of Sonic Oilfield Services Ltd. ("Sonic"), an environmental services company that provides pressure trucks, fluid hauling, chemical and KCL products in Saskatchewan. Sonic's well maintained fleet is used to serve the drilling, completions, production and facility needs of clients operating within Kindersley and Weyburn, Saskatchewan.
This acquisition will add 60 pieces of rolling stock to Vertex's fleet, strengthening Vertex's presence in Saskatchewan and enabling the company to effectively service the resource and potash/mining regions of the province. In addition, Sonic's Kindersley operation includes a KCL mixing facility which will now be owned and operated by Vertex.
This acquisition was completed for the purchase price of $4.5 million with 2.35 million common shares being issued at $1.00 per common share, and the remaining balance paid in cash. The purchase price is subject to increase if certain valuation metrics of Vertex are not satisfied by December 31, 2019, or earlier following certain corporate events. The maximum increase in purchase price is $1.175 million. Vertex may, subject to approval of the TSX Venture Exchange, elect to satisfy this increase through the issuance of additional common shares.
All Sonic operations will began operating as Vertex effective January 1, 2018.
Terry Stephenson, President of Vertex stated: "Strengthening our local presence in both Kindersley and Weyburn is beneficial to our current customer base operating within Saskatchewan, as we increase our ability to effectively service the entire province. This acquisition not only expands our service area for environmental services, but also expands the geographic opportunity to provide synergistic and complimentary services such as environmental and land consulting to clientele operating in these areas.
"Sonic has a long operating history following proven safe work practices, and has a track record of integrating technology that creates efficiencies for their clients. By utilizing Vertex's breadth of expertise in fluid management, logistics, industrial cleaning and consulting, Sonic's clientele will benefit from working with a single operator to meet their operational needs. This acquisition will strengthen both service offerings, resulting in benefits for each current customer base, as well as provide additional project opportunities from the increased geographic presence."
Established in 1976, Vertex has grown to become a leading provider of environmental and environmentally focused industrial services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 900 employees that service a wide array of customers in industries such as upstream and midstream oil and gas, utilities, telecommunication, forestry, agriculture and government.
Vertex principally operates in western Canada and maintains a presence in select locations in the United States.
Certain statements contained in this news release, such as the Company's expectations regarding its results, the impact of its cost controls, and diversification efforts for the remainder of the year and any purchase price adjustment and any issuance of additional common shares in consideration therewith, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that the Company's expectation regarding the impact of its costs controls and diversification efforts are accurate and assumptions regarding future commodity prices, exchange rates, demand for the Company's services. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, fluctuations in market conditions, failure to obtain regulatory approvals, as well as the other risks and uncertainties applicable to the provision of environmental and industrial services and to the Company as set forth in the Company's Filing Statement in respect of the Company's qualifying transaction filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
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 press release.
SOURCE Vertex Resource Group Ltd.
For further information: Please contact Terry Stephenson, President and CEO, or Michael Zvonkovic, CFO, Vertex Resource Group Ltd., 780-464-3295.