Company also acquires water-treatment business, intellectual property
By Devika Patel
Knoxville, Tenn., April 20 - Ridgeline Energy Services Inc. said it plans a C$1.32 million private placement of units.
The company will sell 3 million units of one common share and one half-share warrant at C$0.44 per unit.
Each full warrant is exercisable at C$0.65 for two years. The strike price reflects a 27.45% premium to C$0.51, the April 19 closing share price.
The company also said it signed a definitive purchase agreement on April 4 with Danzik Hydrological Sciences, LLC and Dennis M. Danzik to buy Danzik Hydrological Sciences, a private company. Danzik is the sole member and owner of Danzik Hydrological Sciences' interests, and both Danzik Hydrological Sciences and Danzik are at arm's length to Ridgeline.
Danzik Hydrological Sciences holds the worldwide rights to certain intellectual property developed by Danzik. The private company also holds a 50% interest in the Eau Claire Partnership with Ridgeline Eau Claire Inc., a Ridgeline subsidiary.
The intellectual property is a method for treating contaminated water from oil, gas and other industries. Specifically, the technology lowers water treatment costs and enhances the capture of contaminants. In addition, the intellectual property offers an economic way to produce fuel recovered from waste water. The processes return a combustible by-product that can burn more cleanly than diesel fuel and can be blended with other fuels, including natural gas.
Third-party laboratory testing of the method has shown it can treat contaminated wastewaters economically and effectively to meet the required standards for environmental protection.
Proceeds from the placement will be used to develop the water treatment business, to manufacture equipment and for research and development.
Calgary, Alta.-based Ridgeline provides environmental services to the Western Canadian energy industry.
| Issuer: | Ridgeline Energy Services Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$1.32 million
|
| Units: | 3 million
|
| Price: | C$0.44
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.65
|
| Pricing date: | April 20
|
| Stock symbol: | TSX Venture: RLE
|
| Stock price: | C$0.51 at close April 19
|
| Market capitalization: | C$21.53 million
|
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