CALGARY, AB and
SCOTTSDALE, AZ, May 20, 2013 /CNW/ - Ridgeline Energy Services
Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF,
FSE: RL7) a technology driven company operating in the waste
water industry provides the following update regarding the Santa Fe
Springs acquisition from Lakeland Processing Company, LLC and
Lakeland Development Company (collectively "Lakeland").
On April 5, 2013
Ridgeline completed the transactions under an Asset Purchase
Agreement dated April 9, 2012, as
amended, between Ridgeline Energy Services (USA), Inc. a subsidiary of the Company, Lake
Processing Company, LLC and Lakeland Development Company, and
Purchase Agreement dated effective January
25, 2013 between Ridgeline Energy Services (USA) Inc. and Lakeland Development
Company.
Under the Asset Purchase Agreement, Ridgeline
acquired the assets of an industrial water treatment facility
located in Santa Fe Spring, California. The purchase price for the assets
was $3,000,000, of which $2,000,000 was paid in cash and the balance was
paid through the issuance of 2,469,136 common shares at a deemed
price of $0.405 per share which were
issued to Lakeland Development Company.
Under the Purchase Agreement, Ridgeline acquired
an 18 acre parcel of land on which the water treatment facility is
located. The purchase price for the lands was $13,000,000. At closing, Ridgeline paid
$3,500,000 in cash, issued a two year
5% unsecured $392,857 promissory note
and issued 1,571,429 common shares at a deemed price of
$0.70. Ridgeline also assumed
$2,582,143 of liabilities from
Lakeland.
The balance of the purchase price is to be paid
through installments of 1,550,000 common on the 3rd,
6th, 9th, 12th and 15th
months following closing. These common share installments will be
held in escrow pending the receipt of the land reclamation funds by
Lakeland and paid to Ridgeline for remediation of the purchased
lands.
If the common shares issued under the
installments are at a market price less than $0.70, then Ridgeline will issue a two year 5%
promissory note for the difference between the market price and
$0.70.
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is a
technology driven water treatment company. The Company trades on
the TSX Venture Exchange under the symbol "RLE" and the OTCQX as
"RGDEF". Additional information is available on the Company's
website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis Danzik
"
Dennis Danzik
CEO
"Neither 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 news release. This news release
may contain forward-looking statements. Forward-looking statements
address future events and conditions and therefore, involve
inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.
Such information is subject to known and unknown risks,
uncertainties and other factors that could influence actual results
or events and cause actual results or events to differ materially
from those stated, anticipated or implied in the forward-looking
information. Readers are cautioned not to place undue
reliance on forward-looking information, as no assurances can be
given as to future results, levels of activity or
achievements."
SOURCE Ridgeline Energy Services Inc.