Pink Sheets: WEESF
EDMONTON, Feb. 1 /CNW/ - Wavefront Energy and Environmental Services Inc.
("Wavefront"), a leader in technology development and implementation for
improved oil recovery and optimized groundwater remediation is pleased to
announce the completion of its sale of 9,641,052 units ("Units") of the
Company at a price of $0.95 per Unit for gross proceeds of $9,158,999. Each
Unit consists of one common share (a "Common Share") and one half of one
common share purchase warrant ("Warrant"), with each full Warrant entitling
the holder to acquire a Common Share priced at $1.25 for period of twelve
months ending January 31, 2009.
The Units were sold, through its agent, M Partners LLC ("M Partners"), by
way of a brokered and concurrent non-brokered private placement ("Private
Placement"). M Partners, as Agent for the brokered portion of the Private
Placement, will receive a 6% cash commission of $534,891, plus the
reimbursement of their expenses including legal fees. All Units issued under
the Private Placement are subject to a four-month hold period expiring on June
Net proceeds of the Private Placement are estimated to approximate
$8,555,108 and will be used to fabricate of Powerwave(TM) and Primawave(TM)
systems, with the remainder to be set aside for unallocated working capital.
Passport Energy Master Fund SPC Ltd. and Passport Global Master Fund SPC
Ltd together own or control 13.3% of the issued share capital of the Company
and warrants which, if exercised, together with their shares, would be 18.5%
of the issued capital of the Company on a partially diluted basis.
Wavefront Chairman Steve Percy stated, "The Board and Management remain
very confident in our strategic plan and the industry altering benefits that
our technology provides the energy and environmental sectors. We appreciate
the trust and support the investment community has placed in the Company to
bring this plan to fruition. Wavefront continues to see positive uptake in the
use of Powerwave and Primawave and expects greater advancements moving forward
as the marketplace comes to understand the technical and financial impacts
these products bear on oil recovery and groundwater cleanup and remediation."
About Wavefront Energy and Environmental Services Inc.
Wavefront is a technology-based company with a focused, strategic plan to
leverage the value of our intellectual property in order to maximize oil
production recovery operations, as well as provide additional solutions for
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC.
"D. Brad Paterson" (signed)
D. Brad Paterson, CFO & Director
Cautionary Disclaimer - Forward Looking Statements
Certain statements contained herein regarding Wavefront and its
operations constitute "forward-looking statements" within the meaning of
Canadian securities laws and the United States Private Securities Litigation
Reform Act of 1995. All statements that are not historical facts, including
without limitation statements regarding future estimates, plans, objectives,
assumptions or expectations or future performance, are "forward-looking
statements". In some cases, forward-looking statements can be identified by
terminology such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "predict", "potential", "continue" or the negative of
these terms or other comparable terminology. We caution that such
"forward-looking statements" involve known and unknown risks and uncertainties
that could cause actual results and future events to differ materially from
those anticipated in such statements. Such factors include fluctuations in the
acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for
products and services, fluctuations in the market for oil and gas related
products and services, the ability of Wavefront to attract and maintain key
personnel, technology changes, global political and economic conditions, and
other factors that were described in further detail in Wavefront's continuous
disclosure filings, available on SEDAR at www.sedar.com. Wavefront expressly
disclaims any obligation to up-date any "forward-looking statements", other
than as required by law.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF
THIS RELEASE WHICH WAS PREPARED SOLELY AT THE DISCRETION OF MANAGEMENT
For further information:
For further information: D. Brad Paterson, CFO, (780) 486-2222 x224, Tel