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iCrowdNewswire Jan 21, 2021 2:47 PM ET

DIVERGENT Energy Services Announces Debt Conversion and Extension


DIVERGENT Energy Services Announces Debt Conversion and Extension

iCrowd Newswire - Jan 21, 2021

DIVERGENT Energy Services Corp. is pleased to provide the following update on its financing position.

The Company’s Common Shares commenced trading on the TSX Venture Exchange at the open of the market on January 19, 2021. Following the 10 for 1 share consolidation, the total number of issued and outstanding Common Shares is 18,629,912.

On January 20, the Company issued 14,375,000 (post-consolidation) Common Shares at a price of CAD $0.30 per share on conversion of CAD $4,312,500 or 75% of its secured debentures (the “Debt Conversion“). Following the issue of these Common Shares, the issued and outstanding shares available for trading is 33,004,912.   Of the Common Shares issued as part of the Debt Conversion, approximately 3,442,500 Common Shares will be issued to Directors and/or Officers of the Company. The Common Shares issued pursuant to the Debt Conversion are subject to a hold period of four months and one day in accordance with applicable securities legislation and the TSXV requirements.

The Company has also executed the 5th supplemental indenture agreement extending the maturity date of CAD $1,437,500 of the debentures from December 31, 2021 to December 31, 2025. As consideration for the extending the maturity date of the debentures, the Company issued two (2) warrants, each having an exercise price of CAD $0.30 (post-consolidation) and a term of two (2) years, for every dollar value of the principal amount of the debentures being extended resulting in the issue of 2,875,000 new warrants. The issue of the warrants remains subject to the approval of the TSX Venture Exchange.

Cameron Barton, Executive Chairman, commented: “The Company has significantly improved its current financial position by successfully restructuring CAD $5,750,000 of secured debt through a combination of equity issue and extension of the maturity date of remaining debentures. In 2021, interest obligations on secured debentures have been reduced by 75% and there are no principal repayments required until 2025.”      

For Further Information:

Ken Berg, President and Chief Executive Officer, kberg@divergentenergyservices.com

Lance Mierendorf, Interim Chief Financial Officer, lmierendorf@divergentenergyservices.com

ABOUT DIVERGENT ENERGY SERVICES CORP.

Headquartered in Calgary, Alberta, Divergent provides Artificial Lift products and services that are used in the oil and gas industry. Product lines including Electric Submersible Pumps, Electric Submersible Progressing Cavity Pumps, and the future development of an Electromagnetic Pump technology.

DIVERGENT Energy Services Corp., 2020, 715 – 5th Ave SW, Calgary, AB T2P 2X6, (403) 543-0060, (403) 543-0069 (fax), www.divergentenergyservices.com

Contact Information:

Ken Berg, President and Chief Executive Officer, kberg@divergentenergyservices.com








Tags:    Wire, Disclosure Newswire, United States, English