Divestco Inc.

Divestco Inc.

November 16, 2009 17:01 ET

Divestco Announces Issue of Convertible Debenture

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2009) -


Divestco Inc. (TSX:DVT) ("Divestco" or the "Corporation") is pleased to announce that it has closed, effective today, a private placement of an aggregate principal amount of $3,750,000 of 9.75% unsecured convertible debentures maturing November 15, 2011 (the "Debentures"). The private placement was conducted on a sole lead basis by Scotia Capital Inc.

The Debentures are convertible at the option of the holder at any time before maturity for common shares of Divestco at a conversion price equal to $0.805 per common share, subject to standard anti-dilution adjustments. The Debentures will bear interest at 9.75% per annum, payable quarterly, and are repayable in cash at maturity.

The net proceeds of the offering will be used for the repayment of existing unsecured convertible indebtedness and working capital purposes.

The securities referred to above have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, unless registered under the US Securities Act or an exemption to registration is available.

About Divestco Inc.

Divestco is an exploration services company that provides a comprehensive and integrated portfolio of software, services, data and consulting to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco's breadth of software, services, data and consulting solutions offers customers the ability to access and analyze the information required to make business decisions and to optimize their success in the upstream oil and gas industry. Divestco is headquartered in Calgary, Alberta, Canada and trades on the Toronto Stock Exchange under the symbol "DVT".

The TSX has not reviewed nor accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    Chief Executive Officer
    (403) 218-6466
    Divestco Inc.
    Mr. Roderick Chisholm
    Chief Financial Officer
    (403) 218-6450