Ridgeline announces definitive agreement
AGREEMENT FOR THE PURCHASE OF MISSOURI FACILITY
PURCHASE SECURES $ 35 MILLION IN ANNUAL REVENUE
CALGARY, March 11, 2013 /PRNewswire/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7, FSE: RL7) a water treatment and energy technology company, today announced that it has executed a definitive agreement for the purchase of CWT, LP for stock and debt. CWT, LP is the beneficial owner of the (DBA), Consolidated Water Treatment of Missouri (CMT) which is the entity Ridgeline signed a management agreement with on February 5th, 2013. The acquisition is subject to approval of the Toronto Venture Exchange.
The Company has purchased all of the partner interest in CWT, LP and its operating subsidiaries; Renewable Energy Solutions, LLC and TDP, LLC which includes the facility located in Carthage, Missouri for CDN $15,000,000 million dollars in Ridgeline common stock at $0.58 per share, and a five year secured debt in the amount of CDN $20,000,000 million dollars. The Sellers, which are represented by CWT Enterprises Canada, Inc. will also receive 4,100,000 warrants at a price of CDN $1.00 with expiration in five years.
Dennis M Danzik, Ridgeline CEO commented "This is the second significant acquisition for Ridgeline this year, with the closing of our Santa Fe Springs facility imminent. The acquisition of CWT, LP which includes the facility in Missouri provides for an accelerated growth track for the Company. This acquisition will allow Ridgeline to transition from a small business to a business with two premier, fully integrated waste water properties with substantial capital equipment and infrastructure. Ridgeline has now completed the fully integrated waste water business model."
Mr. Danzik also commented, "We look forward to detailing our growth and offering guidance in our upcoming conference call, and giving a clear picture as to our growth, and shareholder value. Ridgeline continues to deliver; aggressive revenue gains, as well as substantial balance sheet, and profitability growth."
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is a water treatment and energy technology company. The Company is applying proprietary technology to treat water generated from industrial and commercial waste water markets. These markets include a wide variety of clients across a broad spectrum of industries including oil and gas. Through its environmental consulting and remediation divisions, Ridgeline Environment has built a reputation as an established provider of environmental services to the Western Canadian oil and gas industry. Ridgeline GreenFill provides soil remediation and wet waste disposal services to the oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".
ON BEHALF OF THE BOARD OF DIRECTORS
Dennis M. Danzik, CEO
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SOURCE Ridgeline Energy Services Inc.