Symbol: LSI (TSX.V)
SYLVAN LAKE,
AB, April 1, 2013 /CNW/ -
Lonestar West Inc. (TSX.V: LSI) ("Lonestar" or the
"Company") a premier provider of Hydrovac and Vacuum truck
services is pleased to announce that it has acquired 100% interest
in PLJ Enterprises, LLC ("PLJ"), an Oklahoma, USA based Hydrovac and Vacuum truck
service provider.
PLJ started operations in 2010 and is currently
operating a fleet of 2 Hydrovac and 2 Vacuum trucks out of their
base in Elk City, Oklahoma.
Lonestar has entered into employment agreements with key members of
management, which is expected to provide for a seamless
integration. The acquisition is expected to immediately add
US$2.5 million in annual revenues,
and bring Lonestar's growing fleet to 50 units.
"The acquisition of PLJ is in line with our
growth strategy of expanding into the USA and growing our fleet. PLJ has no
geographical overlap with Lonestar and the acquisition will be
beneficial in expanding our customer base and reducing the
seasonality of Lonestar's underlying business as the Oklahoma market is not affected by the weather
conditions faced by our Canadian locations." said James Horvath, CEO of Lonestar.
In consideration of the acquisition of all of
the issued and outstanding Units of PLJ, the Corporation paid
$900,000 cash on closing, issued a
$600,000 unsecured promissory note
(the "Note") and issued 40,000 common shares of the Company
at a price of $2.50 per share or
$100,000 in the aggregate. The Note
bears interest at the rate of 1.7% per annum and becomes due and
payable in full on March 29,
2016.
The Company also announced that it has granted
20,000 incentive stock options of the Company to two employees for
a total of 40,000 options under its Stock Option Plan. All
options are exercisable at $2.50 per
common share and expire on March 29,
2018.
About Lonestar West
Based in Sylvan Lake,
Alberta, Lonestar West Inc. (www.lonestarwest.com) operates
a fleet of 50 HVAC and vacuum trucks throughout Western Canada and recently expanded into
California and Oklahoma. It is focused on profitably
growing its HVAC services to become a major competitor in the North
American market.
For more information please visit the Lonestar
West website at www.lonestarwest.com
NEITHER THE 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 RELEASE.
SOURCE Lonestar West Inc.