SERVICE SECTOR / Northline Energy Services Acquires Company
NORTHLINE COMPLETES ACQUISITION OF COILED TUBING COMPANY AND FINANCING
Date: 6/24/98 6:34:41 PM
Stock Symbol: NES
NORTHLINE ENERGY SERVICES INC. ("Northline") (ASE: NES) is pleased to
announce that it has completed its previously announced Major Transaction,
pursuant to which Northline has acquired all of the issued and outstanding
securities of Northline Energy Ltd. ("NEL") for $2,000 in cash and the
payment by Northline of all outstanding shareholder loans of NEL, which loans
plus interest at a rate of 5.5% per annum were $375,263.22. The acquisition
of the shares of NEL constitutes the major transaction of the Corporation as
defined in ASC Policy 4.11 and ASE Circular Number 7.
Northline also announces it has raised gross proceeds of $1,050,000 pursuant
to the private placement of 1,000,000 units of Northline (the "Units") at a
price of $1.05 per unit. Each Unit consisted of one common share of
Northline and one share purchase warrant (the "Warrants"), with each Warrant
entitling the holder thereof to purchase one additional common share of
Northline for a period of six months at a price of $1.50.
NEL is a company that is engaged in the business of marketing, selling and
providing endless coiled tubing, drilling and related services to the oil and
gas industry in Alberta. |
