Divestco Announces Court Approval of Sale of Assets to 2179602 Alberta Ltd.
Calgary, Alberta--(Newsfile Corp. - May 14, 2019) - Divestco Inc. (TSXV: DVT.H) ("Divestco" or the "Company") is pleased to announce that, in connection with its creditor protection proceedings under the Companies' Creditors Arrangement Act (the "CCAA") and previously announced sales solicitation process (the "SSP") that concluded on April 30, 2019 with 2179602 Alberta Ltd. (the "Purchaser") emerging as the "Successful Bidder", the Company today received authorization from the Court of Queen's Bench Alberta (the "Court") to complete the sale of substantially all of Divestco's assets, as contemplated by the SSP, to the Purchaser (the "Transaction"). Based on the approval received from the Court, the closing of the Transaction is currently set to occur on May 31, 2019, or such other date as may be agreed upon between the two parties. In addition to the foregoing, the Court also today granted Orders approving an extension of the stay in the CCAA proceedings to June 15, 2019 and approving additional interim financing that is being provided to Divestco for the purposes of meeting its ongoing cash flow requirements during the CCAA process.
Further details in respect of the CCAA Proceedings, the Company's SSP and the terms of the Transaction and asset purchase and sale agreement between the Purchaser and Divestco are available under the Company's profile on the System for Electronic Document Analysis and Retrieval (www.sedar.ca) and are also available, along with additional information respecting the CCAA proceedings, on the website of Grant Thornton Inc., the Court-appointed CCAA monitor (the "Monitor"), at (www.grantthornton.ca/Divestco). Readers are urged to consult the full text of all of the documents available on SEDAR and the Monitor's website for further, more detailed, information. Readers are cautioned that there is no guarantee whatsoever that the CCAA proceedings, the Transaction or any other form of transaction or restructuring will resolve Divestco's financial issues or result in the realization by Divestco or Divestco's stakeholders of any particular value. Divestco does not have control over the Court process to which it is subject or the related results therefrom. There are a number of factors outside of the control of Divestco that may delay or impact the closing of the Transaction and, as a result and notwithstanding the approval of the Court today, the Transaction may not close on the timeline or in the manner expected by Divestco or at all. Divestco will continue to provide its stakeholders with updates of any further material developments in its CCAA proceedings or as it relates to the closing of the Transaction.
About the Company
Divestco is an exploration services company that provides a comprehensive and integrated portfolio of data, software, and services to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco's breadth of data, software and services offers customers the ability to access and analyze the information required to make business decisions and to optimize their success in the upstream oil and gas industry. Divestco is headquartered in Calgary and trades on the NEX under the symbol "DVT.H". Additional information on Divestco is available on its website at www.divestco.com and on SEDAR at www.sedar.com.
For more information please contact:
Mr. Steve Sinclair-Smith
Chief Operating Officer
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