CALGARY, ALBERTA -- (Marketwired) -- 05/09/13 -- Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE: DVT) is pleased to announce it has closed a senior secured finance facility with PNC Bank Canada Branch ("PNC") for up to $11 million. The new facility is comprised of a revolving facility of up to $8 million and a $3 million term loan.
Divestco will use the proceeds to pay off existing bank and other debt totaling approximately $5.3 million and will have up to approximately $5.7 million available for capital expenditures and working capital. The facility has a three-year term with the revolving facility bearing interest at Canadian prime plus 1.75% and the term loan bearing interest at Canadian prime plus 2.5%.
Mr. Stephen Popadynetz, CEO, CFO and President: "We are very pleased to be entering into this new partnership with PNC. This new facility will help Divestco strengthen its balance sheet and provide the Company with additional working capital without diluting shareholders."
About the Company
Divestco is an exploration services company that provides a comprehensive and integrated portfolio of data, software, and services to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco's breadth of data, software and services offers customers the ability to access and analyze the information required to make business decisions and to optimize their success in the upstream oil and gas industry. Divestco is headquartered in Calgary, Alberta, Canada and trades on the TSX Venture Exchange under the symbol "DVT".
This press release contains forward-looking information related to the Company's capital expenditures, projected growth, view and outlook towards future oil and gas prices and market conditions, and demand for its products and services. Statements that contain words such as "could', "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning applicable by Canadian securities legislation. Although management of the Company believes that the expectations reflected in such forward-looking information are reasonable, there can be no assurance that such expectations will prove to have been correct because, should one or more of the risks materialize, or should the assumptions underlying forward-looking statements or forward-looking information prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Readers should not place undue reliance on forward-looking statements or forward-looking information. All of the forward-looking statements and forward-looking information of the Company contained in this press release are expressly qualified, in their entirety, by this cautionary statement. Except where required by law, the Company does not assume any obligation to update these forward-looking statements or forward-looking information if conditions or opinions should change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contacts:
Divestco Inc.
Mr. Stephen Popadynetz
CEO, President and CFO
587-952-8152
Divestco Inc.
Mr. Danny Chiarastella
Vice President, Finance
587-952-8027
www.divestco.com
