CALGARY, ALBERTA -- (Marketwired) -- 05/04/15 -- CriticalControl Solutions Corp. ("CriticalControl" or the "Corporation") (TSX: CCZ) announced that it has closed the sale of the remaining component of its non-energy business consisting of document imaging, data entry and business process outsourcing services based in Edmonton, Alberta for gross proceeds of $1.3 million. Under the terms of the sale, all accounts receivable, liabilities and other working capital associated with the business prior to the sale will be retained by CriticalControl, other than a portion of the Corporation's lease obligations that will be assumed by the purchaser.
"This final divestiture of our service bureau operations completes the transformation of the Corporation into a focused oil and gas measurement software and services company," said Alykhan Mamdani, President and CEO of CriticalControl.
In a press release dated March 2, 2015, CriticalControl announced that it is reviewing strategic alternatives with respect to its non-energy services business, which comprised 30% of the Corporation's revenue in 2014. The strategic review has now been completed with the successful divestiture of all portions of the non-energy business, yielding proceeds of $4.0 million. In addition to the proceeds, the Corporation will also benefit from the working capital that was previously invested in the business and retained by the Corporation. As at December 31, 2014, the working capital in the service bureau operations was $0.4 million, excluding unearned revenue and prepaid expenses, deferred lease inducements and an onerous lease provision assumed by the purchaser.
Forward Looking Statements
$400,000 of the cash proceeds from the sale of the total proceeds of $4.0 million has been deferred until November 1, 2015. Total benefit to the Corporation from the freed up working capital will be dependant upon the actual working capital associated with each component of the business as at when that portion of the business was divested. The amount may be different from the amount of working capital as at December 31, 2014.
About CriticalControl
CriticalControl provides solutions for the collection, control and analysis of measurement and operational data related to oil and gas wells across North America. We provide services to capture the data, cloud-based software to visualize and manage it and the business intelligence to make quicker and more informed operational decisions.
Contacts:
CriticalControl Solutions Corp.
Mr. Alykhan Mamdani
President & CEO
(403) 705-7500
