CALGARY, ALBERTA--(Marketwire - June 11, 2010) - EcoMax Energy Services Ltd. (TSX VENTURE:EES) ("EcoMax" or the "Company") carries on the business of selling, repairing, distributing and certifying blowout preventers ("BOPs") (the "Business") from leased facilities in Red Deer and Leduc, Alberta. Pursuant to the terms of an asset purchase and sale agreement (the "Asset Sale Agreement") dated June 10, 2010 between the Company and Tri-Service Oilfield Manufacturing Ltd. (the "Purchaser"), the Company has agreed to sell the Business and certain assets (including the inventory, capital assets and trade names) used in the operation of the Business (the "Assets"), to the Purchaser or the Purchaser's nominee for the purchase price of $525,000, plus the value of inventory and the assumption of certain liabilities (the "Asset Sale"). The Assets are more specifically defined in the Asset Sale Agreement which will be posted on SEDAR at www.sedar.com. The Asset Sale is expected to close on or around July 7, 2010.
The completion of the transaction is subject to certain conditions, the most significant of which are the Company receiving the approval of the TSX Venture Exchange and its shareholders, the Company being able to repay its debt to the Purchaser from the proceeds of the sale and the Purchaser being able to reach suitable arrangements with the landlords of the BOP facilities in Red Deer and Leduc.
An Annual General and Special Meeting of the Company's shareholders to consider and to approve the proposed transaction is to be held on July 6, 2010. The proposed transaction is subject to approval by shareholders holding not less than 2/3 of the votes cast at the Annual General and Special Meeting.
The Company is also asking the shareholders to consider and to approve an amendment to the Company's Articles to provide for a consolidation of the Company's issued and outstanding Common Shares on a 1 for 5 basis. A management information circular describing the rationale for and terms of the proposed resolutions will be mailed to shareholders in advance of the meeting. The management information circular will also be made available on SEDAR at www.sedar.com.
About EcoMax Energy Services Ltd.:
EcoMax Energy Services Ltd. is an oilfield services company whose product offering includes BOP sales and service solutions to the drilling and well servicing industries primarily in Western Canada.
Forward-looking Statements: The information in this news release may contain "forward-looking statements" within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address activities, events, outcomes and other matters that EcoMax Energy Services Ltd. plans, expects, intends, assumes, believes, budgets, predicts, forecasts, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. These forward-looking statements are based on management's current belief, based on currently available information, as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements and refer to our Annual Report for further detail.The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.