CALGARY, ALBERTA–(Marketwired – April 11, 2016) – NEW WEST ENERGY SERVICES INC. (TSX VENTURE:NWE) today announced that at the special meeting held on April 7, 2016, NWE shareholders overwhelmingly approved the previously announced proposed private placement financing and the creation of a new “control person” in William A. Rand, NWE’s Chairman.
At the meeting, 45.44% of the issued and outstanding common shares were represented. After excluding the votes attaching to the common shares held by Mr. Rand and the other NWE directors who are expected to participate in the proposed financing, 97.77% of the common shares represented at the meeting were voted in favour of proposed financing and creation of a new control person.
NWE President and Chief Executive Officer, Gerry E. Kerkhoff, commented: “We are very pleased that our shareholders have so strongly endorsed New West’s strategy of strengthening its balance sheet and positioning itself to create significant shareholder value when oil and gas prices rebound and field activity levels improve.”
“NWE has a long and trusted track record in oil and gas services throughout western Canada. These are very challenging times for the oil and gas industry but thanks to our strong customer base we have shown resilience and are following through on our focus of completing strategic acquisitions that provide additional service capacity, both in scale and geographic scope, to our current and future customers. While our core business will remain tied to drilling waste and water management, including transport and disposal, we intend to explore opportunities that would allow NWE to expand its service offering to a broader range of customers,” noted Mr. Kerkhoff.
Non-Brokered Private Placement Expected to Close Shortly
In order to strengthen its balance sheet, NWE previously announced that it intends to complete a non-brokered private placement financing of up to 33,333,333 common shares to be issued at a price of $0.03 per share for aggregate gross proceeds of up to $1,000,000.
The closing of the financing is subject to applicable regulatory approvals, including approval of the TSXV and is expected to close shortly. All common shares issued pursuant to the private placement will be subject to a hold period of four months and one day.
ABOUT NEW WEST ENERGY SERVICES
NWE management and operations personnel have over 20 years of experience in oil and gas services throughout western Canada. The company uses advanced technology and processes in drilling waste and water management, including transport and disposal. Through its subsidiaries, NWE services the drilling, completions and production sectors and operates a fleet of modern straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers. NWE is a recognized leader in comprehensive environmental services, with management contributing to the establishment of the first guidelines in Alberta for Landspray While Drilling. NWE’s main service centres are located in Beaverlodge and Medicine Hat, Alberta, and its head office is in Calgary, Alberta.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
