Mar 1 - 2, 2017 - London, United Kingdom
Strad Energy Services is pleased to announce that it has entered into definitive share purchase agreements with each of Redneck Oilfield Services Ltd. and Raptor Oilfield Services Ltd. (collectively "Redneck") providing for the combination of Strad and Redneck (the "Transaction"). This acquisition creates a stronger, more diverse rental platform to better service customers focused in the Montney and Duvernay plays of North East British Columbia and North West Alberta (the "Deep Basin"). The combined company will operate one of the newest, largest and most diverse fleets of rental equipment in the Deep Basin from key locations in Fort St. John, Dawson Creek and Grande Prairie.
Under the terms of the Transaction, Strad will acquire all of the shares of Redneck in exchange for an aggregate of 11,098,598 class A common shares of Strad ("Strad Shares") plus the assumption of an estimated $11.7 million of net debt (which includes $14.0 million of long-term debt less $2.3 million of net working capital) at closing, representing a total Transaction value of approximately $30.6 million, based on the 20 day weighted average trading price of Strad Shares on the TSX immediately preceding the date hereof. The Strad Shares to be issued to Redneck shareholders pursuant to the Transaction will be subject to a time release escrow agreement and will be released in tranches over the course of a 3 year period following completion of the Transaction. Strad is also pleased to announce that upon completion of the Transaction Lyle Wood, the founder and President of Redneck, will be appointed to the board of directors of Strad (the "Strad Board") and be retained as an integral member of Strad's management team. The employees of Redneck will also be joining the Strad team upon closing of the Transaction.
Source : Strad Energy Services Ltd.