|By Marketwired .||
|January 31, 2014 01:53 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 01/31/14 -- West Mountain Capital Corp. (TSX VENTURE: WMT) (the "Company" or "West Mountain") announces that it has executed a second amendment ("Amendment No.2") to the binding heads of agreement ("Heads of Agreement") with Jereh Energy Services Corporation ("Jereh") of Yantai, China that extends the expiry date of the Heads of Agreement to 12:00 pm Newfoundland Standard Time on February 28th, 2014.
"With the Chinese New Year celebrations beginning today there just has not been enough time to complete all of the negotiations necessary," said Paul Antle, President and CEO, "we will be ready to re-commence negotiations on the definitive agreements again on February 10th when most businesses return to operation."
The Company advises that through the course of negotiations the structure of the investment to be made by Jereh in the Company has changed. It is now anticipated that the investment will be comprised of the sale of (i) 15,474,074 common shares of the Company at the price of C$0.27 per share for proceeds of C$4,178,000 and (ii) a 6.5% secured convertible bond (the "Bond") of the Company in the aggregate principal amount of US$3,000,000 issued at par. The Bond and accrued interest would be due and payable on the second anniversary of date of issue. The principal amount of the Bond would be convertible at the option of Jereh prior to maturity at the conversion prices of C$0.32 and C$0.50 per share during the first year and second year of its term respectively.
In addition to conditions customary for transactions of this nature, the completion of the Transaction is conditional upon the following: (a) the completion by West Mountain, Jereh and their respective advisors of "due diligence" investigations satisfactory to the parties in their respective sole discretion; (b) the entering into of definitive binding agreements providing for the various transactions that comprise the transaction with Jereh; and (c) the Company receiving all necessary consents and approvals, including approval by the TSX Venture Exchange. The definitive agreements providing for the Transaction are expected to be finalized and executed by the parties on or before February 20th, 2014.
About West Mountain
West Mountain is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. It employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil, industrial sludge, pharmaceutical waste and consumer waste streams converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. The Company's management team maintains expertise in hazardous waste management, Brownfield remediation and pharmaceutical waste management with experience spanning North America and 15 countries internationally.
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, this news release contains forward-looking information regarding the transaction with Jereh. The forward-looking statements and information are based on certain key expectations and assumptions made by West Mountain, including expectations and assumptions concerning the completion of the transactions described in this news release. Although West Mountain believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because West Mountain can give no assurance that they will prove to be correct. There is no assurance that the transactions described in this news release will be completed on the terms set out in this news release or at all.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Factors which could materially affect such forward-looking information include the failure to enter into definitive agreements that provide for the Transaction described in this news release and other factors that are described in the risk factors in the Company's most recent annual management's discussion and analysis that is available on SEDAR at www.sedar.com. The forward-looking statements included in this news release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this news release are made as of the date hereof and West Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.