CALGARY, ALBERTA--(Marketwired - Sept. 24, 2015) - Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE:DVT)announces that it has entered into a secured loan with Invico Diversified Income Limited Partnership ("IDILP") for $3.2 million, repayable March 31, 2017 (the "Invico Loan"). Proceeds of the loan were used to repay $0.6 million in shareholder loans with the balance being used to augment working capital. There are no financial ratio covenants. IDILP is managed by a Calgary-based registered investment fund manager and portfolio manager, Invico Capital Corporation.
The Invico Loan ranks senior to the Company's other indebtedness, being $1.0 million of debentures and $5.1 million of shareholder loans, details of which have been previously reported in the Company's annual and quarterly financial filings filed on SEDAR (www.sedar.com) and on the Company's website (http://www.divestco.com/Investor-Relations/Financial-Reports.aspx).
As a result of Divestco repaying a portion of its shareholder loans, it entered into an amended loan agreement (the "Shareholder Loans") with two directors of the Company (the "Directors"). As of the date hereof, the Company owes $5.1 million to the Directors. The Shareholder Loans bear interest at 12% per annum and are secured by way of registered security pursuant to the Personal Property Security Act (Alberta). The Shareholder Loans are subordinated to the Company's senior lender, repayable in monthly principal payments of $0.1 million commencing on April 1, 2017.
About the Company
Divestco provides innovative geoscience solutions to Energy and Service companies worldwide. Our customers predominantly operate in geology, geophysics, land and engineering and we work with our clients to ensure they have the right solutions, at the right time, to help them make more informed decisions. Commitment, innovation, accountability and agility form the cornerstone of our values and enable us to consistently provide reliable solutions and exceptional, personalized service in all of the core areas in which we operate. Divestco provides Software & Data, Seismic Processing, Geomatics Services, Seismic Data & Brokerage, and Land Services. Divestco is headquartered in Calgary and trades on the TSX Venture Exchange under the symbol "DVT".
Additional information on the Company is available on its website at Divestco.com and on SEDAR at sedar.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.
Forward-Looking Information and Statements
In particular, this press release contains forward-looking information and statements pertaining to the following: the use of proceeds of the loan from IDILP; and the Company's contractual obligations and intentions in respect of repayment of the Invico Loan and the Shareholder Loans. This forward-looking information and the related statements are based upon factors, expectations and assumptions reflected in the forward-looking statements that reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
The forward-looking information and statements contained in this press release are based upon several material factors and expectations and assumptions of Divestco including, without limitation: Divestco's status as a going concern; that Divestco will continue to conduct its operations in a manner consistent with past operations; future interests rates; future availability of debt and/or equity sources to fund Divestco's capital and operating requirements as needed on terms acceptable to management of Divestco or at all; future prices for crude oil and natural gas; and the ability of the Company to complete a sale of non-strategic assets, including but not limited to finding appropriate potential purchasers who are willing to purchase such assets at market prices.
The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information and statements including, without limitation: general economic, market and business conditions; increased debt levels or debt service requirements; limited, unfavourable or no access to debt or equity capital markets; volatility in market prices for crude oil and natural gas; ability of Divestco's clients to explore for, develop and produce oil and gas; availability of financing and capital; the ability of Divestco's customers to pay in a timely manner; fluctuations in interest rates; demand for the Company's product and services; the lack of a suitable purchaser for Divestco's non-strategic assets; competitive actions by other companies; failure to obtain regulatory approvals in a timely manner; adverse conditions in the debt and equity markets; and government actions including changes in environment and other regulation; and certain other risks detailed from time to time in Divestco's public disclosure documents including, without limitation, those risks identified in this press release.
The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Divestco does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
(September 24, 2015 - 4:03 PM EDT)
News by QuoteMedia