CALGARY, Nov. 21, 2017 /CNW/ - MATRRIX Energy
Technologies Inc. ("MATRRIX" or the "Corporation") (TSXV: MXX) is
pleased to announce that it has successfully completed its
previously announced acquisition (the "Acquisition") of Stampede
Drilling Ltd. ("Stampede").
MATRRIX has taken up and paid for 14,600,000 Class A common
shares ("Class A Shares") and 3,000,000 Class B common shares
("Class B Shares") of Stampede that were tendered to MATRRIX's
Offer to Purchase (the "Offer"), representing 97.33% of the Class A
Shares and 100% of the Class B Shares. MATRRIX has acquired the
remaining 400,000 outstanding Class A Shares pursuant to the
compulsory acquisition provisions of The Business Corporations
Act (Saskatchewan). An
aggregate of 22,580,640 common shares of MATRRIX ("MATRRIX Shares")
were issued to former shareholders of Stampede under the Offer on
the basis of 1.25448 MATRRIX Shares for each Class A Share and
1.25448 MATRRIX Shares for each Class B Share.
MATRRIX is also pleased to announce that it has closed its
previously announced private placement (the "Private Placement") of
MATRRIX Shares on a "best efforts" agency basis at a price of
$0.31 per MATRRIX Share. Under the
Private Placement, the Corporation issued 64,520,000 MATRRIX Shares
for aggregate consideration of $20,001,200.
Lightyear Capital Inc. ("Lightyear") acted as the exclusive
financial agent for the Private Placement. In connection with the
Private Placement, MATRRIX paid Lightyear a cash commission of
$964,454 and 3,111,143 options (the
"Agent's Options") in consideration of the services performed by
Lightyear under the Private Placement. Each Agent's Option entitles
Lightyear to purchase one MATRRIX Share at a price of $0.31 per share until November 21, 2018.
All of the securities issued in connection with the Private
Placement, including the MATRRIX Shares and Agent's Options, are
subject to a four month hold period expiring March 22, 2018.
Insiders of the Corporation participated in the Private
Placement and purchased an aggregate of 2,393,352 MATRRIX Shares or
approximately 3.71% of the Private Placement.
The Corporation intends to use the proceeds from the Private
Placement for repayment of debt, capital expansion and working
capital.
As a result of the closing of the Acquisition and the Private
Placement, there are currently 123,078,280 MATRRIX Shares issued
and outstanding.
About MATRRIX
To complement its existing horizontal and directional drilling
operation, MATRRIX executed a series of strategic moves earlier
this year including the return of Elson
McDougald to its board of directors, the appointment of
Lyle Whitmarsh as President - Rig
Division, the addition of Terry
Kuiper as Sales Manager - Rig Division, the purchase of 3
heavy, telescopic double drilling rigs located in S.E. Saskatchewan from Vortex Drilling Ltd. through
a receivership process, and now the completion of the
Acquisition.
Leveraging from the success Stampede has enjoyed in S.E.
Saskatchewan since its inception
in 2011, MATRRIX will deliver high quality, regionally focused
drilling operations for its oil and gas clients, utilizing the
existing Stampede leadership and the 6 rig fleet of compatible
telescopic double drilling rigs.
MATRRIX has developed and implemented a proprietary software
platform called D2ROXTM (pronounced
DEE-ROCKS) allowing the Corporation and its oil and gas clients to
drive safe, predictable, repeatable, cost effective drilling
operations at the rig site, for the Corporation's existing
horizontal and directional drilling operation and its emerging
drilling rig business.
MATRRIX President and CEO Richard
Ryan states, "We've been fortunate to attract a very solid
team to lead our expansion into the contract drilling business.
With Lyle's vision and experience in growing a drilling rig
operation, the foundation we've built in horizontal and directional
drilling, and with the confidence demonstrated by the investment
community through this financing, we're well positioned to continue
with expansion, growth, and consolidation at a very opportune part
of the cycle. We've demonstrated the ability to turn vision into
action over the last few months, and are very pleased to have the
capital and momentum for execution of this new strategy."
Forward-looking Information
Certain statements contained in this press release constitute
forward-looking information. This information relates to future
events or the Corporation's future performance. All information
other than statements of historical fact is forward-looking
information. The use of any of the words "anticipate", "plan",
"contemplate", "continue", "estimate", "expect", "intend",
"propose", "might", "may", "will", "could", "believe", "predict"
and "forecast" are intended to identify forward-looking
information.
In particular, this press release contains forward-looking
information pertaining to the use of proceeds from the Private
Placement and the delivery by the Corporation of high quality,
regionally focused drilling operations.
This forward-looking information involves material assumptions
and known and unknown risks and uncertainties, certain of which are
beyond the Corporation's control. The Corporation's Annual
Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website
www.sedar.com) describe the risks, the material assumptions and
other factors that could influence actual results and which are
incorporated herein by reference. Actual results, performance or
achievements could differ materially from those expressed in, or
implied by, this forward-looking information and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of
them do so, what benefits the Corporation will derive
therefrom.
The forward-looking information contained herein is provided as
at the date hereof and the Corporation does not undertake any
obligation to update publicly or to revise any of the included
forward-looking information, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities laws
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 release.
SOURCE MATRRIX Energy Technologies Inc.