TSX Symbol - PSD
CALGARY, June 3 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company") announced today that it has completed the sale of its Terrapoint business unit to Ambercore Software Inc. ("Purchaser"). The purchase price of the transaction was $6.5 million cash with an effective date of March 31, 2008.
The base purchase price of $6.5 million included $3.0 million paid on closing and the remaining $3.5 million is to be paid within thirteen months of closing. Payment of the remaining $3.5 million has been guaranteed by SQFive Intelligent Oilfield Solutions Ltd., a subsidiary of Quorum Oil and Gas Technology Fund Limited. Incremental future consideration, up to an additional $1.5 million, may also be realized based upon results of consolidated operations of the Purchaser during the twelve month period following the closing date.
The transaction represents a sale of the majority of the net assets of the Terrapoint business unit including certain working capital items totaling $4.5 million. The Purchaser has hired the entire Terrapoint management team and essentially all Canadian and U.S. Terrapoint employees. Pulse retains the Canadian tax pools having an estimated value to the Company of approximately $3.6 million.
With this sale, Pulse has now divested itself of all non-core business assets and has positioned itself as a pure play seismic data library company providing 2D and 3D seismic to the oil and natural gas industry in Western Canada. Pulse will focus solely on growing its seismic data library through acquisition of seismic data sets and participation surveys.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data for the western Canadian energy sector. Pulse owns the second-largest freely tradeable seismic data library in Canada, currently consisting of 257,300 net kilometres of 2D seismic and 11,700 net square kilometres of 3D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occurs.
Pulse has publicly traded on the TSX since 2001. The Company has paid its shareholders a quarterly dividend since 2003 and at Pulse's current share price provides one of the highest dividend yields on the TSX.
Certain information contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Investors are encouraged to review the "Risk Factors" section of the Management's Discussion and Analysis in the Company's most recent annual and interim reports for a discussion of risks that could affect the Company's operations and financial results. Forward-looking statements are based upon management's assumptions, expectations and estimates at the time that such statements are made. Pulse does not update forward-looking statements should circumstances change or management's assumptions, expectations or estimates change, except as required by securities laws.