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Cathedral Energy Services Announces Completion of Exit From Venezuela Investment
Cathedral Energy Services Announces Completion of Exit From Venezuela Investment C...
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[{"type":"text","content":"\n\n\n\nCathedral Energy Services Announces Completion of Exit From Venezuela Investment\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nCathedral Energy Services Announces Completion of Exit From Venezuela Investment\nCanada NewsWire\nCALGARY, Feb. 29, 2016\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\n\nCALGARY, Feb. 29, 2016 /CNW/ - Cathedral Energy Services Ltd. (TSX: CET) (\"Cathedral\") announces it has closed on an agreement to sell its wholly-owned Barbados subsidiary, Directional Plus International Ltd. (\"DPI\"), for net proceeds of $nil and an expected non-cash gain on sale of approximately $10.8 million.  In 2013/2014, Cathedral recorded a write-down of its Venezuelan investment in the amount of $12.9 million.  DPI held Cathedral's investment in Venezuela and this sale completes Cathedral's exit from carrying on a business in Venezuela. \n\nAlthough net proceeds are $nil, Cathedral's working capital will increase by approximately $12.3 million.  This working capital adjustment relates primarily to previously recorded liabilities that have been settled for $nil. Such liabilities are assumed by the purchaser of DPI.\n\nFORWARD-LOOKING INFORMATION\n\nThis press release contains certain statements or disclosures relating to Cathedral that are based on the expectations of Cathedral as well as assumptions made by and information currently available to Cathedral which may constitute forward-looking information under applicable securities laws. In particular, statements related to expected non-cash gain on sale and working capital increase may contain forward-looking information. Many factors could cause the performance or achievement by Cathedral to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information. Cathedral's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website (www.sedar.com) describe the risks, material assumptions and ot...