Lonestar Announces Southern Saskatchewan Asset Acquisition
June 20 2014 - 5:37PM
Marketwired
Lonestar Announces Southern Saskatchewan Asset Acquisition
SYLVAN LAKE, ALBERTA--(Marketwired - Jun 20, 2014) - 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.
NEITHER THE
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
RELEASE.
Lonestar West Inc.James HorvathPresident &
CEO403-887-2074info@lonestarwest.comwww.lonestarwest.comThe Howard
Group Inc.Jeff WalkerInvestor Relations(888) 221-0915 or (403)
221-0915jeff@howardgroupinc.com