TSX Venture Exchange
Symbol "BRY"
EDMONTON, July 19 /CNW/ - Bri-Chem Corp. (the "Bri-Chem") (TSX Venture Exchange: BRY) a leading Canadian wholesale distributor of drilling fluids, products and services, is pleased to announce that it has completed the acquisition of Millennium Technologies Ltd. ("Millennium"), a Western Canadian-based full-service chemical products wholesaler. The acquisition of Millennium is expected to add approximately $12 million in annual revenues to Bri-Chem and strengthen its overall sales and technical staff.
Since 1999, Millennium has developed a diversified product mix and currently supplies over 200 drilling fluid, environmental and production chemical products to a customer base primarily located in the Western Canada.
"The acquisition of Millennium and its operations in Saskatchewan bring us a step closer to providing complete territorial coverage for our customers along with inventory warehouse consolidation," comments Mr. Alan Campbell, Chief Executive officer of Bri-Chem, "Millennium is an exceptional fit for our drilling fluids division and will provide efficiencies to overall customer service."
Mr. Trent Abraham, General Manager of Millennium and who now joins Bri-Chem commented, "This transaction gives Millennium customers the opportunity to continue their expansion into the oil and gas markets. I am motivated by the growth opportunities presented by this transaction and look forward to continuing my relationship with Millennium's customers as a member of the Bri-Chem team."
The total purchase price of $4,440,000 consists of $2,940,000 cash payable as to $2,640,000 on closing, $300,000 fourteen months from closing and $1,500,000 by way of the issuance of 714,286 common shares at a price of $2.10 per share. The acquisition also incorporates 100,000 share purchase warrants issued to the vendors. Each share purchase warrant entitles the holder to purchase one common share of Bri-Chem at a price of $2.10 per common share for a period of three years from July 17, 2007. The parties agreed to amend the original purchase price terms from $4,500,000 to $4,440,000 and the share issuance and warrant exercise price from $2.50 to $2.10.
About Bri-Chem
Bri-Chem operates out of its head office located in Acheson, Alberta and its principal activity is the wholesale/distribution blending and packaging of drilling fluid supplies for the oil and gas industry. Bri-Chem provides over 100 domestic and foreign products to customers throughout Alberta, British Columbia and Saskatchewan.
Forward Looking Statements
Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Bri-Chem to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, fluctuations in oil and gas activity levels, political and economic conditions, and the demand for products provided by Bri-Chem.
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