Business
MATRRIX Energy Technologies Inc. to acquire Stampede Drilling Ltd. and complete concurrent private placement
MATRRIX Energy Technologies Inc. to acquire Stampede Drilling Ltd. and complete concurrent...
About this update from Stampede Drilling Inc.
[{"type":"text","content":"\n\n\n\nMATRRIX Energy Technologies Inc. to acquire Stampede Drilling Ltd. and complete concurrent private placement\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, Oct. 31, 2017\n\n\n\nCALGARY, Oct. 31, 2017 /CNW/ - MATRRIX Energy Technologies Inc. (\"MATRRIX\" or the \"Corporation\") (TSXV: MXX) is pleased to announce that it has entered into an agreement to acquire all of the issued and outstanding shares of Stampede Drilling Ltd. (\"Stampede\"), a private corporation which owns 3 heavy telescopic double drilling rigs in the Weyburn/Estevan area of southeast Saskatchewan (the \"Acquisition\").\n\nUnder the terms of a pre-acquisition agreement with Stampede (the \"Pre-Acquisition Agreement\"), MATRRIX has agreed to make an offer (the \"Offer'') to acquire all of Stampede's outstanding Class \"A\" common shares (\"Class A Shares\") and Class \"B\" common shares (\"Class B Shares\" and collectively with the Class A Shares, the \"Stampede Shares\") for total consideration of approximately $7 million (plus the assumption of debt of approximately $2 million), consisting of the issuance of common shares of MATRRIX (\"MATRRIX Shares\") for a total purchase price of approximately $9 million.\n\nPursuant to the Offer, holders of Stampede Shares (the \"Stampede Shareholders\") will receive 1.25448 MATRRIX Shares for each Class A Share and 1.25448 MATRRIX Shares for each Class B Share. \n\nPursuant to the Acquisition, MATRRIX will acquire 3 fully crewed, modern, heavy telescopic double rigs currently enjoying profitability and high utilization. It is expected that key employees and management of Stampede will be retained and continue with MATRRIX, forming a strong operational nucleus for the Corporation's southeast Saskatchewan contract drilling business.\n\nFounded in 2011, Stampede is a privately owned and operated Saskatchewan drilling rig contractor based in Estevan, SK. The management team and field staff are local residents of the Weyburn/Estevan area and have over 60 years of drilling experience in the southeast Saskatchewan oil and gas services...