Business
Western Energy Services Corp. Announces Share Consolidation, Rights Offering and Private Placement
/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ CALGARY,...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE\nUNITED STATES/\n\n\nCALGARY, Sept. 5 /CNW/ - Western Energy Services Corp. ("Western" or the\n"Company") announces that given the continuing weakness in the Canadian oil &\ngas services sector, Western has been able to identify a number of\nopportunities to acquire equipment required to service its clients' needs at\nprices materially below replacement cost. Western has identified and sourced\nspecific equipment that it can purchase for an aggregate purchase price of\n$2.5 - $3.5 million. Western intends on raising funds for these potential\npurchases, and for general corporate purposes, through a combination of the\nsale of non-core assets, a rights offering and a non-brokered private\nplacement financing, details of which financings are discussed below. Western\nhas realized approximately $1.5 million within the last 60 days from non-core\nasset sales, which amount is to be applied toward the planned equipment\npurchases. The balance of funds for equipment purchases will be raised in the\nrights offering and the private placement, with the gross aggregate proceeds\nfrom these financings expected to not exceed $2 million.\n\n\nFurther to these financing plans, Western announces that the\nconsolidation (the "Consolidation") of common shares of the Company (the\n"Common Shares"), as approved at the Company's annual general meeting on\nJune 25, 2008, will be implemented after market close on Friday, September 5,\n2008. Pursuant to the Consolidation, twelve pre-Consolidation Common Shares\nwill be exchanged for one post-Consolidation Common Share. The\npost-Consolidation shares will begin trading on the TSX Venture Exchange\n("TSXV") on Monday September 8, 2008 under the symbol "WRG". On a\npost-Consolidation basis, the Company will have 14,000,580 Common Shares\noutstanding. Registered holders of Common Shares were previously mailed a\nLetter of Transmittal in respect of the Consolidation. Registered holders\nshould submit their Common Share certificates, together with the duly\ncompleted and signed Letter of Transmittal, to the Company's transfer agent as\nper the instructions in the Letter of Transmittal.\n\n\nWestern shall be proceeding with a rights offering to shareholders of the\n...