SERVICE SECTOR / Arcis COrp. nearing completion of Major Acquisition
CALGARY, Feb. 17 /CNW/ - (RKS - TSE) - Arcis Corporation wishes to
announce that further to the news release of January 19th, 1998, the Company
is proceeding with its purchase of Sourcex Geophysical Inc. for $2.5 million
plus 2,307,694 common shares of Arcis (valued at $1.5 million or $0.65 per
share).
Arcis has completed its due diligence, received Board approval and
accepted a Confirmation of Financing from a Canadian Chartered Bank. This will
expand the Company's lines of credit to $3.45 million.
The acquisition will significantly enhance the combined companies'
ability to conduct 2D and particularly larger 3D seismic acquisition for its
clients. It also allows Arcis to continue to build its seismic data library.
In the year ended September 30th, 1997, Sourcex had revenues of $20.8 million.
In addition, Arcis has received a proposal, from a large U.S. private
company, for a $2 million 7% convertible subordinated debenture. The debenture
has a three-year term and is convertible at $0.60 per share. Arcis has
accepted the proposal, which is subject to due diligence and any required
regulatory approval. The convertible debenture financing is scheduled to close
at the same time as the February 27th, 1998 closing date of Sourcex. The
effective date of the acquisition is January 2nd, 1998.
Arcis, which was established in December 1996, is a uniquely integrated
geophysical services company operating in Western Canada. The Company
processes, archives, brokers and manages seismic data as well as providing two
field acquisition crews to shoot exclusive and non-exclusive seismic data. It
is Arcis' primary objective to create a significant proprietary seismic data
library in the next few years as well as to continue to provide outstanding
service to over 150 oil and gas companies.
Arcis has 23.6 million shares issued and outstanding prior to the
purchase of Sourcex and the issuance of the convertible debenture. |
