CALGARY, ALBERTA -- (Marketwired) -- 11/06/15 -- Formation Fluid Management Inc. (DBA Formation Fluid Technology Inc.) (TSX VENTURE: FFM) ("FFM" or the "Corporation") is pleased to announce that it has obtained two secured non-convertible loans (collectively, the "Loans") in the amounts of CAD$200,000 and CAD$500,000 from Ken Rose, President, CEO and Director of the Corporation (the "Ken Rose Loan"), and Patch International Inc. ("Patch") (the "Patch Loan"), respectively. The Ken Rose Loan is evidenced by a promissory note issued by FFM to Ken Rose on October 27, 2015 (the "Ken Rose Promissory Note") and secured by a general security agreement. The amount outstanding under the Ken Rose Promissory Note bears no interest and is due and payable on demand. The Patch Loan is evidenced by a promissory note issued by FFM to Patch on November 6, 2015 (the "Patch Promissory Note") and secured by a general security agreement. Amounts outstanding under the Patch Promissory Note shall incur interest at a rate of 10% per annum, payable in arrears at maturity, and will be due six months from the date of issue. The security interests of the Ken Rose Loan and Patch Loan shall rank parri passu.
Mr. Mark Bentsen, a director of the Corporation, is also a director of Patch and Mr. Ken Rose is the current President, CEO and a Director of the Corporation. Accordingly, the Loans are considered "related party" transactions pursuant to Multilateral Instrument 61-101 ("MI 61-101"). The Corporation is relying on the exemption available under section 5.7(f) of MI 61-101 from the minority shareholder approval requirement of MI 61-101. The issuance of the Patch Promissory Note and the Ken Rose Promissory Note are not subject to the formal valuation requirements. The Loans remain subject to final approval from the TSX Venture Exchange. The Loans will be used by FFM for working capital and general and administrative expenses.
About the Corporation
Formation Fluid Management Inc. has developed a three stage waste water treatment plant (Hydro- Cycle) that uses a proprietary process to clean waste water. Each plant is mobile and can process up to 1000 m3 of water per day. This system treats water to meet or exceed CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in reusable water that can be used for: Boilers, Frac Water, Water Floods, and Drilling Operations. Formation Fluids has identified commercial applications for the Hydro-Cycle system within the oil and gas industry. The waste water treatment system has a primary use to reduce producers' costs of dealing with produced water. The system also satisfies the need to reuse and recycle an increasing valuable resource.
Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Statements in this news release may contain forward-looking information including the use of proceeds from the Loans and the final approval of the TSX Venture Exchange. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements. The Corporation believes that the expectations reflected in the forward-looking statements contained in this news release are reasonable, but no assurance can be given that they will prove to be correct. Actual results and future events may differ materially from those anticipated and accordingly forward-looking statements should not be unduly relied upon. Forward-looking statements contained in this document speak only as of the date of this news release. Except as required by applicable law, Corporation disclaims any obligation to update any forward-looking information.
Contacts:
Brian Anderson
Chief Financial Officer
Phone: 403-803-3013
Email: info@fftinc.ca
