News Release - Final Prospectus
NEWS RELEASE TRANSMITTED BY CCN - A NEWSWIRE SERVICE OF ITG
FOR: WENZEL DOWNHOLE TOOLS LTD.
TSE SYMBOL: WZL
OCTOBER 31, 2000 - 17:07 EST
Wenzel Downhole: Final Prospectus
CALGARY, ALBERTA and EDMONTON, ALBERTA--Wenzel Downhole Tools Ltd.
(the "Corporation"), is pleased to announce that on October 30th,
2000 receipts were obtained by the securities commissions in the
provinces of Alberta and Ontario for the Corporation's final
prospectus dated October 27th, 2000 (the "Prospectus"). The
Prospectus qualifies for distribution 2,571,800 Common Shares
issuable upon the exercise of Special Warrants (the "Special
Warrants") previously issued on June 22nd, 2000. Each Special
Warrant entitles the holder to acquire one (1) Common Share and
one-half (1/2) of one (1) Warrant. Each full Warrant entitles the
holder to acquire one additional Common Share at a price of $2.00
per Common Share until June 15, 2002.
The Prospectus also offers for sale a minimum of 1,000,000 common
shares ($2,500,000) and a maximum of 3,000,000 Common Shares
($7,500,000), at a price of $2.50 per Common Shares, (the "Common
Shares"). The offering price of the securities offered for sale
was determined by negotiation between the Corporation and Dominick
& Dominick Securities Inc. (the "Agent"). The Agent will receive
a commission equal to 7% of the total Offering. In addition, the
Corporation will also grant to the Agent options (the "Agent's
Options") to purchase that number of Common Shares equal to 7% of
the number of Common Shares sold pursuant to the Prospectus
offering, at an exercise price of $2.50 per Common Share for a
period of 12 months from the closing of the Prospectus. The
Agent's Options are qualified pursuant to the Prospectus.
The Corporation is a public company whose shares trade on The
Toronto Stock Exchange under the symbol "WZL". The Corporation is
engaged in the business of designing, manufacturing, renting,
leasing, servicing, and selling downhole drilling tools that are
primarily used in the oil and gas drilling industry. The
Corporation holds a number of patents on proprietary drilling
technology and spends a significant amount of time on research and
development. The Corporation is as a service company in the
drilling industry providing products to increase drilling
efficienccy and reduce drilling costs.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Wenzel Downhole Tools Ltd.
Donald Barber, President
(403) 205-6696
(403) 265-8154 (FAX)
or
Wenzel Downhole Tools Ltd.
Don Holloway
(403) 265-8154
Website: www.downhole.com
The Alberta nor the Ontario security regulatory authorities have
neither approved nor disapproved the contents of this news
release. |
