New West Energy Services Inc. (TSX VENTURE:NWE), an oil and gas and environmental services company focused on Western Canada, today provided a corporate update and announced its intention to proceed with a consolidation of its common shares.
Gerry E. Kerkhoff, President and Chief Executive Officer of NWE stated, "New West is coming off a strong winter season with near-full utilization of our operating equipment in January, February and March and expect continued strength coming out of spring breakup and into summer."
Mr. Kerkhoff concluded, "We have added a number of new clients in the completions and productions sector and our existing clients in the drilling sector are much more active and planning larger projects. With increasing signs of recovery in the oil and gas industry and our larger and more diversified fleet of equipment, we expect significantly higher revenues in the upcoming summer season compared to this time last year."
NWE intends to proceed with a consolidation of its issued and outstanding common shares on the basis of one post-consolidation common share for every five pre-consolidation common shares. The consolidation was previously approved by the shareholders of NWE at the annual and special meeting held on October 24, 2016 and is subject to approval of the TSX Venture Exchange.
The directors of NWE believe that the post-consolidation market price per common share will (a) allow for the issuance of at-market stock options which are designed to motivate and retain the NWE's key officers and employees in order to achieve results that ultimately benefit the shareholders; and (b) facilitate further financing activities of NWE, make investing in the common shares more attractive to a broader range of institutional investors and other members of the investing public.
NWE intends the effective date of the consolidation to be April 27, 2017 with the common shares trading on a post-consolidation basis beginning at the open of markets on that day. As of the date of this press release, a total of 118,224,210 common shares are issued and outstanding. Assuming the implementation of the consolidation, a total of approximately 23,644,842 post-consolidation common shares would be issued and outstanding, subject to the treatment of fractional interests.
No fractional common shares will be issued in connection with the consolidation and, in the event that a shareholder would otherwise be entitled to receive a fractional share upon the consolidation, the number of common shares to be received by such shareholder will be rounded up or down to the nearest whole common share.
There is no name change in conjunction with the consolidation, and NWE's trading symbol on the TSX Venture Exchange will remain the same.
About New West Energy Services
NWE management and operations personnel have over 20 years of experience in the drilling, completions and production sectors of the oil and gas industry throughout western Canada. NWE is a recognized leader in comprehensive environmental services and fluid management, including transportation and disposal, and operate through their main service centres in Beaverlodge and Medicine Hat, Alberta, and have their head office in Calgary, Alberta.
SOURCE: New West Energy Services Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.