Expected Sale is for CDN $ 7.2 Million in Cash
Postponed Earnings Report until July 25, 2013
CALGARY, AB and SCOTTSDALE, AZ, June 27, 2013 /PRNewswire/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) a technology driven company operating in the waste water industry announces the execution of a Letter of Intent ("LOI") to sell both of its Canadian Environmental Services and Greenfill business divisions to Ridgeline Canada, Inc. of Calgary.
Ridgeline is pleased to announce the execution of an LOI to sell ("Sale") all of its Canadian Environmental ("Consulting") and GreenFill soils treatment ("GreenFill") business divisions to Ridgeline Canada, Inc. of Calgary. The LOI includes both operating divisions based in Canada. The divisions known as Ridgeline Environment. and Ridgeline GreenFill will be operated as private companies.
The Ridgeline trade names are also a part of the sale.
Ridgeline Canada, Inc. will also become the exclusive representative for waste water treatment and fuel refining in Canada.
Dennis M. Danzik CEO stated "We are delighted that we were able to sell both our environmental consulting operation and soil remediation business, which are obviously no longer the focus of our core business. This transaction will also give our rapidly growing U.S. and Canadian operations some long term representation in Canada through management that we have worked with for many years. This also provides our waste water and energy operations with substantial growth capital without a financing."
"Due to the substantial growth of Ridgeline Energy Services, Inc. and the divesting of our environmental consulting divisions, management deems it necessary to postpone our earnings release that was scheduled for today. The earnings report will be rescheduled for July 25th, 2013."
The Company expects a definitive agreement on the Sale to be executed by June 28, 2013 along with a substantial down payment to be made to the Company at that time.
Danzik also stated "This is a great continuation of what is a small company in Calgary that has grown modestly for more than a dozen years, and given great service to over 40 oil and gas customers. It is also a substantial sign of continued growth for our waste water business that is in demand in almost every corner of North America."
The Ridgeline name will transfer with the Sale of the divisions. The Company had a name change approved at its last Annual General Meeting and will become RDX Technologies Corporation in about two weeks.
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is a technology driven water treatment company. The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Also traded on the FSE (Frankfurt) as "RL7". Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Dennis M Danzik
Dennis M Danzik
Director and Chief Executive Officer
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SOURCE Ridgeline Energy Services Inc.