Agrotech Greenhouses Inc.
TSX VENTURE : AGV.H

January 25, 2010 13:46 ET

Agrotech Closes West Texas Acquisition and Provides Update on Reactivation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2010) - Agrotech Greenhouses Inc. (TSX VENTURE:AGV.H) (the "Company") wishes to provide an update regarding its Reactivation on the TSX Venture Exchange (the "Exchange") first announced in its news release dated July 27, 2009 and recently updated in the Company's news release dated December 29, 2009.

The Greater Joe Mill Project - Acquisition

Further to the Company's news release dated December 29, 2009, the Company is pleased to announce that Contact USA has closed its acquisition of the Greater Joe Mill Project in the Permian Basin of West Texas. It has acquired a 25% net working interest in approximately 4,700 of the seller's net mineral acres within the project area by committing to pay for its proportionate share of the drilling cost of the first four (4) wells and paying for its share of the associated mineral leases and existing salt water disposal ("SWD") well. Consequently, Contact USA has paid the seller a total of US$689,902 for its share of the estimated drilling costs of the first well, mineral leases and SWD well. The drilling of the first well is expected to commence within the next thirty days. Drilling of the subsequent three wells is expected sometime in the second quarter of 2010. A finder's fee is payable by Contact USA in respect of this transaction.

The Company's Name Change and Consolidation

In conjunction with the 1 for 3 consolidation of the Company's shares, which has been approved by shareholders, it is now proposed to change the Company's name to "ARCHER PETROLEUM CORP."

Financing

The Company is not proceeding with the financing announced in its news release of July 27, 2009. Instead, the Company shall conduct a private placement of up to 6,667,000 post-consolidation shares at Cdn$0.45 each to raise Cdn$3,000,000 at the closing of the Reactivation, subject to regulatory approval. The Company reserves the right to increase this financing by up to 20%. Finders' fees will be payable in connection with the placement.

ABL Agreement

The Company has entered into a management services agreement with ABL Energy Partners LLC ("ABL"), a leading, Houston-based, oil and gas consulting firm specializing in assisting oil and gas companies maximize shareholder value. ABL has long-standing relationships with industry partners and participants. Pursuant to the agreement, ABL has agreed to provide the Company with operational, business development and corporate finance services, and will introduce and assist the Company in the acquisition of new oil and gas projects.

Stock Option Grant

The Company is pleased to announce that pursuant to its Stock Option Plan and in conjunction with the closing of the Company's Reactivation and subject to shareholder and regulatory approval of the Reactivation, the Company has granted options to purchase up to 600,000 post-consolidation shares of the Company exercisable at $0.34 per share for a term of five years from the closing date of the Reactivation.

Cautionary Statements

Completion of the Reactivation is subject to a number of conditions, including Exchange acceptance, shareholder approval, and completion of the financing. The Reactivation cannot close until the required shareholder approval is obtained. There can be no assurance that the Reactivation will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Filing Statement being prepared in connection with the Reactivation, any information released or received with respect to the Reactivation may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this news release.

ON BEHALF OF
AGROTECH GREENHOUSES INC.

"Colin Bowkett"

Director

Neither the 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.

Contact Information

  • Agrotech Greenhouses Inc.
    Colin Bowkett
    Director
    (604) 683-7588
    (604) 683-7589 (FAX)