Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

November 13, 2009 09:08 ET

Cordy Oilfield Services Inc.: Update Regarding British Columbia Securities Commission Regulatory Review of TSX Venture Exchange Approval of Private Placement

CALGARY, ALBERTA--(Marketwire - Nov. 13, 2009) - Cordy Oilfield Services Inc. ( "Cordy") (TSX VENTURE:CKK) announces that the British Columbia Securities Commission (the "BCSC") has issued its ruling in respect of the application Geosam Investments Limited ("Geosam") heard on November 9, 2009 for an order restricting, on an interim basis, the use by Cordy of the proceeds of its recently completed $4.8 million private placement of units (the "Private Placement") pending the hearing by the BCSC of Geosam's application for a review of the decision of the TSX Venture Exchange (the "TSX Venture") approving the Private Placement.

The BCSC has ruled as set out below. Written reasons for the ruling are not yet published.

1. Cordy is to deposit $4.8 million (an amount equal to the proceeds of the private placement) in trust with its legal counsel, or make another arrangement approved by the BCSC that preserves the proceeds of the Private Placement.

2. Cordy is prohibited from issuing any shares on the exercise of warrants sold under the Private Placement.

3. The TSX Venture must not give final approval to the Private Placement.

4. The TSX Venture must not reduce or eliminate the four-month hold period that applies to holders of Cordy shares and warrants sold under the Private Placement.

5. Cordy is disclose to all parties in the proceeding the identities of all purchasers under the Private Placement, to the extent that information is not disclosed in the record of TSX Venture.

This ruling will be in effect until the disposition of Geosam's application for a review of the decision of the TSX Venture approving the Private Placement. It is anticipated that this hearing will be heard by the BCSC on or about November 25, 2009. Cordy looks forward to the hearing of that application and is confident that the approval of the TSX Venture of its recently completed Private Placement will be upheld by the BCSC.

Cordy's Board is satisfied that it has at all times fulfilled its fiduciary duties and acted in good faith and in the best interests of Cordy and all of Cordy's shareholders. Cordy and the Board will continue to vigorously oppose the proceedings commenced by Geosam.

The President and Secretary of Geosam is George Armoyan, a former director of Cordy. Clarke recently disclosed that Geosam holds in excess of 20% of the outstanding common shares of Clarke Inc. George Armoyan is also the Executive Chairman and a director of Clarke Inc. Most recently Clarke Inc. reported that its holds 11,499,600 common shares of Cordy.

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

  • Cordy Oilfield Services Inc.
    David Mullen
    Chairman & CEO
    (403) 802-6005
    (403) 266-2087 (FAX)
    dmullen@cordy.ca