CALGARY, ALBERTA--(Marketwire - July 30, 2010) - EcoMax Energy Services Ltd. ("EcoMax" or the "Company") (TSX VENTURE:EES) announces that it has completed the previously announced sale of its blowout preventer ("BOP") business and certain assets (including the inventory, capital assets and trade names) used in the operation of that business to Tri-Service Oilfield Manufacturing Ltd.
As a result of this sale transaction, the Company's listing on the TSX Venture Exchange will be moved to the NEX on receiving final approval for the transaction from the Exchange. The Company believes that it is in good standing as a reporting issuer. The Company is in the process of reviewing its financial position and evaluating its alternatives going forward. Over the next two months the Company will attempt to reach settlements with its other creditors. If appropriate settlements can be reached, management will attempt to enter into a strategic transaction, for example to sell or merge the Company, to possibly realize some value from the Company's remaining tax pools and the value of its public listing. At the Company's recent Annual and General Meeting of Shareholders, shareholders approved a share consolidation of up to 1 for 5, with authority to the Board of Directors of the Company to determine the advisability of such consolidation and to proceed with it if and when deemed advisable at any time prior to June 10, 2011. As such, the Company would consider proceeding with such consolidation if it assists in the completion of a strategic transaction.
This press release contains forward-looking statements. Any statements that are contained in this press release that are not statements of historical fact may be considered forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Forward-looking statements in this press release include, but are not limited to statements concerning the anticipated movement of the Company's stock exchange listing, negotiations with creditors, negotiations for potential strategic transactions to realize value, the potential share consolidation, and management's assessment of future strategic alternatives.
Although EcoMax believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because EcoMax can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These forward-looking statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, risks and uncertainties that settlement terms with creditors cannot be successfully negotiated and that strategic alternatives to realize value may not be available on terms satisfactory to the Company or at all.
Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release are made as of the date hereof and EcoMax undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.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 release.