CALGARY, Nov. 13, 2017
/CNW/ - Further to its press release dated October 31, 2017, MATRRIX Energy Technologies
Inc. ("MATRRIX" or the "Corporation") (TSXV: MXX) is pleased to
announce the Corporation is increasing its previously announced
private placement of common shares (the "Private Placement") from
gross proceeds of approximately $7
million to gross proceeds of approximately $20 million. Due to strong demand from existing
and new shareholders, the Private Placement will now consist of
approximately 64,520,000 common shares at a price of $0.31 per common share.
The proceeds of the Private Placement will be used for capital
expansion, repayment of debt, and working capital.
The Private Placement will be completed pursuant to the terms of
an agency agreement between the Corporation and Lightyear Capital
Inc.
Closing of the Private Placement is subject to certain
conditions including, but not limited to, the receipt of the
approval of the TSX Venture Exchange.
About MATRRIX
To complement its existing horizontal and directional drilling
operation, MATRRIX executed a series of strategic moves earlier
this year including the return of Elson
McDougald to its board of directors, the appointment of
Lyle Whitmarsh as President - Rig
Division, the addition of Terry
Kuiper as Sales Manager - Rig Division, the purchase
of 3 heavy, telescopic double drilling rigs located in S.E.
Saskatchewan from Vortex Drilling
Ltd. through a receivership process, and the signing of a
definitive agreement to purchase all the outstanding shares of
Stampede Drilling Ltd. ("Stampede").
Leveraging from the success Stampede has enjoyed in S.E.
Saskatchewan since its inception
in 2011, MATRRIX will deliver high quality, regionally focused
drilling operations for its oil and gas clients, utilizing the
existing Stampede leadership and the resulting 6 rig fleet of
compatible telescopic double drilling rigs (which include the 3
rigs acquired from Vortex Drilling). The Stampede transaction is
expected to close on or about November 21,
2017.
MATRRIX has developed and implemented a proprietary software
platform called D2ROXTM (pronounced
DEE-ROCKS) allowing the Corporation and its oil and gas clients to
drive safe, predictable, repeatable, cost effective drilling
operations at the rig site, for the Corporation's existing
horizontal and directional drilling operation and its emerging
drilling rig business.
MATRRIX President and CEO Richard
Ryan states, "We've been fortunate to attract a very solid
team to lead our expansion into the contract drilling business.
With Lyle's vision and experience in growing a drilling rig
operation, the foundation we've built in horizontal and directional
drilling, and with the confidence demonstrated by the investment
community through this financing, we're well positioned to continue
with expansion, growth, and consolidation at a very opportune part
of the cycle. We've demonstrated the ability to turn vision into
action over the last few months, and are very pleased to have the
capital and momentum for execution of this new strategy."
Forward-looking Information
Certain statements contained in this press release constitute
forward-looking information. This information relates to future
events or the Corporation's future performance. All information
other than statements of historical fact is forward-looking
information. The use of any of the words "anticipate", "plan",
"contemplate", "continue", "estimate", "expect", "intend",
"propose", "might", "may", "will", "could", "believe", "predict"
and "forecast" are intended to identify forward-looking
information.
In particular, this press release contains forward-looking
information pertaining to the following: the timing for closing the
Stampede transaction; the Corporation's intentions with respect to
its 6 rig contract drilling business; the completion of the Private
Placement; and the use of proceeds from the Private Placement.
This forward-looking information involves material assumptions
and known and unknown risks and uncertainties, certain of which are
beyond the Corporation's control. The Corporation's Annual
Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website
www.sedar.com) describe the risks, the material assumptions and
other factors that could influence actual results and which are
incorporated herein by reference. Actual results, performance or
achievements could differ materially from those expressed in, or
implied by, this forward-looking information and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of
them do so, what benefits the Corporation will derive
therefrom.
The forward-looking information contained herein is provided as
at the date hereof and the Corporation does not undertake any
obligation to update publicly or to revise any of the included
forward-looking information, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities laws.
Neither the 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 release.
SOURCE MATRRIX Energy Technologies Inc.