Divestco Inc. Announces Closing of Asset Sale to 2179602 Alberta Ltd.
Calgary, Alberta--(Newsfile Corp. - June 2, 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 completed the sale of substantially all of its assets and business to the Purchaser on June 1, 2019. The sale transaction was completed by way of a credit-bid made by the Purchaser and includes the assumption of certain liabilities and the payment of costs associated with the CCAA proceedings.
The Purchaser is a new private company headquartered in Calgary, Alberta that was formed for the purpose of making the "stalking horse" bid in connection with the SSP, which now owns and operates the former assets and business of Divestco. Effective June 1, 2019, the Purchaser will officially be named Divestco Geoscience Ltd. ("Divestco Geoscience"). All notices, correspondence, invoices or payments in respect of Divestco should now be issued in the name of Divestco Geoscience Ltd. at the same mailing address. Notices and other documentation are being issued to partners and service providers in respect of agreements affected by the sale transaction.
In connection with the completion of this transaction, all directors and officers of Divestco will resign. Mr. Stephen Popadynetz (formerly the President and Chief Executive Officer of Divestco) has been appointed to the new Board of Directors of Divestco Geoscience. The management team of Divestco have been terminated by Divestco and hired by Divestco Geoscience, together with substantially all other Divestco personnel, who have also moved over to Divestco Geoscience. Divestco will no longer have any operating assets or active business. Grant Thornton Limited, the court-appointed monitor overseeing the CCAA, will assist with the wind-down of the Company's remaining affairs.
Additional information on Divestco is available on SEDAR at www.sedar.com.
For more information please contact:
Mr. Stephen Popadynetz
CEO and President
Mr. Steve Sinclair-Smith
Chief Operating Officer
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