Ridgeline Clarifies Investor Questions
Further Detail from Investor Conference Call on July 25, 2013
CALGARY, July 30, 2013 /PRNewswire/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) a water treatment and energy technology company, today addresses specific questions resulting from the investor conference call on July 25, 2013 and the March 31, 2013 consolidated financial statements filed last week on SEDAR.
Dennis M. Danzik, Chief Executive Officer of Ridgeline Energy Services, stated, "Last week culminated with announcements and discussions surrounding the cleanup and sale of less productive divisions operated by our Company. These included the environmental and soil remediation operations, primarily located in Alberta Canada. Last week after our fourth quarter and fiscal year end 2013 earnings release conference call with our investors, the Company received several calls that management determined should be further clarified in the broadest manner possible, so I have chosen to launch this detailed release to give some pinpoint clarity as to specific questions regarding the Company's financial condition."
The following is a summary to our most Received Questions:
1. Given the sale of the Company's Environment and Greenfill divisions, is Ridgeline Energy Services, Inc. going to become a private company and no longer trade on the Toronto Venture Exchange?
No. Ridgeline Energy Services, Inc. which is a publicly traded Canadian
company will take on a name change to RDX Technologies Corporation
within the next several days after the proper paperwork is filed with
the stock exchange. All common shares currently held by shareholders of
the Company, traded under "RLE" on the Venture Exchange, "RDGEF" on the
OTCQX, and "RL7" on the Frankfurt Stock Exchange, remain in place and
2. Is Ridgeline Energy Services, Inc. "RLE" currently in a poor liquidity position?
No. RLE cash position has greatly improved since March 31st of this year, due to strict cash management programs and the sale of
underperforming assets. As of today our cash balance is in excess of $
3,000,000. This is up from the approximately $ 1,300,000. as stated in
our year end financials.
3. Will Ridgeline Energy Services, Inc. be raising capital through an equity raise?
No. Our Company is in a strong position to demonstrate our ability to earn
profits through our waste water treatment operations in Santa Fe
Springs California and in Carthage Missouri. The Company currently has
no plans through our second or third financial quarters to consider any
capital raise through the use of our equity.
4. Why will Ridgeline Energy Services, Inc. not need to raise capital from an equity raise during fiscal 2014?
Simple, we will not be spending on any new capital equipment projects. Our
primary water treatment facilities in California and in Missouri are
fully operational and cash flow positive. Our mission now is to focus
on spending reductions, especially at the SG&A level with a goal of
spending less than $ 350,000 per month while refining our net profit
from these two great facilities.
5. With the Company's current plans, Will Ridgeline continue to grow?
Yes. But we will grow as a Company from our two primary facilities through
the end of this fiscal year. Each of our properties in California and
Missouri has the ability to produce tens of millions of dollars in
revenue per property. The revenue potential at these properties allows
for enough growth for this fiscal year.
6. Ridgeline Energy Services, Inc. has over $ 12,000,000 in "Trade Payables".
No. The Company did not have over $12,000,000 in "trade payables" as of March 31, 2013 but rather had over $12,000,000 in "trade and other payables" as of March 31, 2013 which included deferred revenue, non-cash accruals, payables related to the divisions being sold, and other liabilities. The trade and other payables as of March 31, 2013 included the following:
|a.||Trade and other Payables (to date)||$ 6,500,000|
Payables anticipated to be transferred
upon the sale of the Environment and Greenfill divisions
|c.||Santa Fe Springs non-recurring acquisition related costs||$ 1,276,000|
Deferred revenue and other non-cash accruals
(i.e. straight line rent)
Mr. Danzik continued, "As a publicly traded company, full disclosure is of the utmost importance. Year end financials are many times cryptic to the untrained, and in many instances highly trained people need further clarity. As well, our financial year end is now four months behind us. Doubling revenues year over year for any company is challenging, and we are now set for our largest revenue growth year."
"As I have stated, our mission is Water, and the benefit that brings our
customers and shareholders. Over the coming months, and through this
fiscal year, you will see our Company highly focused on our current
operations and shareholder value."
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. 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"
Dennis M. Danzik, CEO
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
SOURCE Ridgeline Energy Services Inc.