Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

October 21, 2009 14:45 ET

Cordy Completes $4.8 Million Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 21, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Cordy Oilfield Services Inc. (the "Corporation" or "Cordy") (TSX VENTURE:CKK) announces the completion of the private placement, first announced on October 1, 2009, of 30 million units ("Units") at the price of $0.16 per Unit for proceeds of $4,800,000. Each Unit issued pursuant to the private placement consisted of one common share ("Common Share") and one common share purchase warrant ("Warrant"). Each full Warrant entitles the holder to purchase one Common Share for three years following the completion of the private placement upon payment of the exercise price of $0.21. The securities issued pursuant to this private placement are subject to a four-month hold period which expires on February 21, 2010.

Lyncorp International Ltd. ("Lyncorp"), of Calgary, Alberta, a company controlled by David Mullen, Cordy's Chief Executive Officer, Chairman and a director, acquired ownership and control of 5,000,000 Units ($800,000) under the private placement, representing 4.4% of the number of Common Shares outstanding after the completion of the private placement. Lyncorp now owns 21,214,534 Common Shares, representing approximately 18.7% of the issued and outstanding Common Shares of Cordy. Presently, Lyncorp does not have any intention of acquiring any further securities of the Corporation, but may acquire ownership or control over further securities of the Corporation in the future depending upon market circumstances. David Orr, an officer of the Corporation, purchased 625,000 Units ($100,000) under the private placement. The Corporation has determined that exemptions are available for the various requirements of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 for the issuance of the Units to insiders of the Corporation.

Also, Six-M-Enterprises (1993) Ltd. ("Six-M-Enterprises"), of DeWinton, Alberta, a company controlled by Roland Mullen and Leona Mullen, acquired ownership and control of 15,000,000 Units ($2,400,000) under the private placement, representing 13.2 % of the number of Common Shares outstanding after the completion of the private placement. Six-M-Enterprises now owns 18,400,000 Common Shares, representing approximately 16.2% of the issued and outstanding Common Shares of Cordy. Presently, Six-M-Enterprises does not have any intention of acquiring any further securities of the Corporation, but may acquire ownership or control over further securities of the Corporation in the future depending upon market circumstances.

The net proceeds of the private placement are intended to be used to fund acquisitions and for general working capital purposes. Cordy now has 113,633,810 Common Shares issued and outstanding. Finders acting in connection with the private placement received a finder's fee in the total amount of $6,400. The private placement is subject to final acceptance by the TSX Venture Exchange.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements, including statements relating to the anticipated use of proceeds of the private placement. Cordy believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. Closing of the private placement could be delayed if Cordy cannot obtain necessary regulatory approvals within anticipated timelines and will not be completed unless certain conditions customary for transactions of this kind are satisfied. The forward-looking statements included in this press release are made as of the date of this press release and Cordy disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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

  • For general information:
    Cordy Oilfield Services Inc.
    David Mullen, Chairman and CEO
    (403) 802-6005
    (403) 266-2087 (FAX)
    dmullen@cordy.ca
    or
    For investor relations information:
    Cordy Oilfield Services Inc.
    David Orr, Senior Vice President
    (403) 802-6008
    (403) 266-2087 (FAX)
    dorr@cordy.ca
    www.cordy.ca
    or
    For a copy of the Early Warning Report of Lyncorp
    Carscallen Leitch LLP
    Attention: Leslie Weekes
    (403) 262-3775
    (403) 262-2952 (FAX)
    or
    For a copy of the Early Warning Report of Six M Enterprises
    Davis LLP
    Attention: Daniel Kenney
    (403) 296-4470
    (403) 213-4460 (FAX)