Sale is for CDN $ 7.347
Million
CALGARY, AB and
SCOTTSDALE,AZ, July 19, 2013 /CNW/ -
Ridgeline Energy Services Inc. ("Ridgeline" or the "Company")
(TSXV: RLE, OTCQX: RGDEF, FSE: RL7) a technology driven company
operating in the waste water industry announced the execution of an
Definitive Purchase Agreement ("DA") to sell both of its Canadian
Environmental Services and Greenfill business divisions to
Ridgeline Canada, Inc. of Calgary.
Yesterday Ridgeline announced (subject to
approval of the TSXV) the execution of the DA to sell ("Sale") all
of its Canadian Environmental ("Consulting") and GreenFill soils
treatment ("GreenFill") business divisions to Ridgeline Canada,
Inc. (RCI) of Calgary. The DA
includes both operating divisions based in Canada. The divisions known as Ridgeline
Environment and Ridgeline GreenFill will be operated as a private
company.
In addition to the term and conditions detailed
yesterday, the Company wishes to further detail two facts; 1) The
note executed for $ 2,500,000.00 in
favor of the Company is a promissory note with straight
amortization over 60 months beginning September 1st, and will carry an
interest rate of six percent per annum (6%); 2) That the
transaction is arms- length and that no director, officer, or
insider of the Company is financially involved in the acquisition
of the Canadian divisions by Ridgeline Canada, Inc.
The majority of employees within Ridgeline
Environment and Ridgeline GreenFill have opted to stay with the new
private company, Ridgeline Canada, Inc.
About Ridgeline Energy Services
Inc.
Ridgeline Energy Services Inc. is a technology driven
water treatment company. The Company trades on the TSX Venture
Exchange under the symbol "RLE" and the OTCQX as "RGDEF".
Also traded on the FSE (Frankfurt)
as "RL7". Additional information is available on the Company's
website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Dennis M Danzik
Dennis M Danzik
Director and Chief Executive Officer
"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. This news release
may contain forward-looking statements. Forward-looking statements
address future events and conditions and therefore, involve
inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.
Such information is subject to known and unknown risks,
uncertainties and other factors that could influence actual results
or events and cause actual results or events to differ materially
from those stated, anticipated or implied in the forward-looking
information. Readers are cautioned not to place undue
reliance on forward-looking information, as no assurances can be
given as to future results, levels of activity or
achievements."
SOURCE Ridgeline Energy Services Inc.