Business
Alberta Court Finds Wilks Brothers Breached Confidentiality Agreement
Alberta Court Finds Wilks Brothers Breached Confidentiality Agreement Canada NewsW...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\n\nAlberta Court Finds Wilks Brothers Breached Confidentiality Agreement\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\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, May 7, 2019\n\n\n\n CALGARY, May 7, 2019 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\") (TSX-CFW) provides this update concerning the action commenced by Calfrac on May 30, 2018 against Wilks Brothers, LLC (\"Wilks Brothers\") in the Alberta Court of Queen's Bench.\nAs described below, in a decision released on May 7, 2019, the Alberta Court of Queen's Bench found that Wilks Brothers breached its confidentiality agreement with Calfrac and dismissed Wilks Brothers' motion for summary judgment.  Calfrac's action will continue in relation to damages issues.\nWilks Brothers' Competing Agenda\nWilks Brothers competes against Calfrac through its ownership of a U.S.-based fracturing business, Profrac Services, LLC (\"Profrac\").  To advance its commercial agenda, starting in late 2017, Wilks Brothers pressured Calfrac to sell or \"spin-off\" its U.S. business, the division that generates the majority of Calfrac's revenues and earnings.  \nWhile Wilks Brothers claimed that spinning off Calfrac's U.S. business would unlock value for Calfrac's shareholders, Wilks Brothers also expressed interest in purchasing or in financing the purchase of Calfrac's U.S. business.\nThe Confidentiality Agreement\nIn an effort to constructively engage with Wilks Brothers, Calfrac recommended that Wilks Brothers enter into a confidentiality agreement, which would allow for a candid exchange of views, including about Calfrac's U.S. business.  \nCalfrac and Wilks Brothers executed a confidentiality agreement in February 2018, following which Calfrac shared confidential information with Wilks Brothers, including about Calfrac's U.S. business.\nWilks Brothers' Press Release\nWhen Calfrac refused to accede to Wilks Brothers' demands that it take steps toward separating its U.S. business, Wilks Brothers withheld votes at Calfrac's May 8, 2018 annual meeting, and issued a press release the following day.  \nCalfrac bel...