|By Marketwired .||
|June 20, 2014 05:37 PM EDT||
SYLVAN LAKE, ALBERTA -- (Marketwired) -- 06/20/14 -- Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or the "Company"), a premier provider of Hydrovac and Vacuum truck services, is pleased to announce a strategic acquisition of certain assets of Vamp Oilfield Services Inc ("Vamp"), an arm's length oil and gas service provider for total consideration of $9.77 million.
Vamp started operations in 2007 and is currently operating a fleet of 2 Hydrovac, 9 vacuum trucks, and 12 ancillary units out of their base in Moose Jaw, Saskatchewan. In calendar 2013 Vamp generated Gross Sales of $6.6 million and over $2.6 million in EBITDA. The acquisition increases Lonestar's fleet from 93 units to 116 units.
"The Vamp acquisition is in line with our corporate growth strategy. The addition of a base in Moose Jaw, Saskatchewan will complement our existing base in Carlyle, Saskatchewan and expand our presence in Western Canada," said James Horvath, CEO of Lonestar. "Lonestar would also like to welcome Ryan Buckton to the Company. Mr. Buckton's experience in the Moose Jaw area will be a valuable addition to our management team."
In consideration of the acquisition of certain assets of Vamp, the Corporation paid $5.52 million cash on closing, and issued five separate unsecured promissory notes (the "Notes") totaling $2.25 million as deferred consideration. The Notes are subject to certain performance thresholds being and do not bear interest. In addition, Lonestar issued 543,478 common shares of the Company at a price of $3.68 per share or $2.00 million in the aggregate.
Lonestar is also pleased to announce a settlement for an aggregate of $251,853 in Lonestar's favour for a legal claim against a former lease operator for breach of a non-competition clause. Lonestar received $47,317, net of legal fees in damages and released $204,536 in accounts payable owed to the former lease operator into revenue.
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar West Inc. (www.lonestarwest.com) operates a fleet of 116 HVAC and vacuum trucks and ancillary vehicles throughout Western Canada and the United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
Disclaimer for Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements and prospects or opportunities for the Company are forward-looking statements. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts. Although the forward-looking statements contained in this press release are based upon assumptions that management of the Company believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements made in this press release relate only to events or information as of the date hereof. Except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
For more information please visit the Lonestar West website at www.lonestarwest.com.
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