Ridgeline Energy Services Inc. (RGDEF: OTC Link) | Ridgeline Closes DHS Acquisition and Bought-Deal Private Placement

Ridgeline Closes DHS Acquisition and Bought-Deal Private Placement

Dec 30, 2011

OTC Disclosure News Service

Calgary, AB, Canada –

Ridgeline Closes DHS Acquisition and Bought-Deal Private Placement

 

CALGARY, Alberta – December 30, 2011 –Ridgeline Energy Services Inc. (TSX-V: RLE; OTCQX: RGDEF) (“Ridgeline” or the “Company”) is pleased to announce that it has closed its previously announced 100% acquisition of Danzik Hydrologic Sciences, LLC (“DHS”) pending the approval by the TSX Venture Exchange. DHS, a private Delaware limited liability company holds the worldwide rights to certain intellectual property developed by Dennis M. Danzik, an investor resident in the U.S.A. DHS also holds a 50% interest in the Eau Claire Partnership, a partnership between DHS and Ridgeline Eau Claire Inc, a wholly owned subsidiary of Ridgeline.

Concurrently, Ridgeline also announces the closing of its previously announced bought-deal private placement offering, subject to the TSX Venture Exchange approval of the DHS transaction. The Company sold 11,227,100 common shares (the “Common Shares”) at a price of $0.60 per Common Share, for aggregate gross proceeds to the Company of $6,736,260, including the partial exercise of the underwriters’ option of $1,736,220 (the “Offering”). The Offering was underwritten by a syndicate of Canadian underwriters (collectively, the “Underwriters”).

Pursuant to the terms of the underwriting agreement entered into between the Company and the Underwriters, the Underwriters may elect to exercise the remainder of the underwriters’ option in whole or in part on or around the time of the TSX Venture Exchange approval of the DHS transaction.

Under applicable Canadian securities laws, the Common Shares are subject to a four-month and one day hold period, expiring on May 1, 2012. The Company has received conditional approval from the TSX Venture Exchange for the listing of the Common Shares sold and issued and issuable pursuant to the Offering, subject to satisfying certain listing conditions of the TSX Venture Exchange.

The proceeds of the Offering will be used by the Company for commercialization, development and working capital.

 

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons,” as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.

 

About Ridgeline Energy Services Inc.

 

Ridgeline Energy Services Inc. is an energy services technology and consulting company focused on waste management in the oil and gas industry.  Through its subsidiary Ridgeline Water Inc., the Company is applying proprietary technology to efficiently and cost effectively treat the large volumes of contaminated water generated by oil and gas production.  The Company is working with energy majors in the application of its technology for the recycle and reuse of; produced and hydraulic fracturing water; enhanced recovery chemical flood water; and oil sands process water. As well the company is utilising its technology in the testing and treatment of commercial and industrial waste water applications. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established provider of environmental services to North America’s oil and gas industry.  The Company trades on the TSX Venture Exchange under the symbol “RLE” and the OTCQX as “RGDEF”.  Additional information is available on the Company’s website at: www.ridgelinecanada.com.

 

For further information please contact:

 

Ryan Johnson of Ridgeline Energy Services Inc.

Corporate Development

(604) 566-8066ext. 3 (Vancouver)

rjohnson@ridgelinecanada.com

 

David Waldman at Crescendo Communications

Investor Relations

 (212) 671-1021 (New York)

dwaldman@crescendo-ir.com

 

 

 

ON BEHALF OF THE BOARD OF DIRECTORS

 

“Tony Ker”

 

Tony Ker

CEO

 

 

“Neither 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 news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information.  Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.”

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/RGDEF/news?id=40530

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