TORONTO, ONTARIO--(Marketwired - Nov. 17, 2016) - Augusta Industries Inc. (the "Corporation") (TSX VENTURE:AAO) is pleased to announce that its wholly owned subsidiary, Marcon International Inc. ("Marcon"), has been award contracts from various departments of the United States government for the supply of instrumentation and equipment. The aggregate value of the contracts awarded was $226,474 for the month of October. The current backlog of orders, including these new contracts, is $1,491,346 as of October 31, 2016.
"The Corporation's continuing success in securing new contracts with various entities of the United States government is proof of the efforts and hard work of the Corporation's sales staff," stated Allen Lone, President of the Corporation. "The awarding of these new contracts is proof of the success of the Corporation's sales strategy that has resulted in increased sales and continued growth. While the Corporation continues to build long term strategic partnerships in the oil and gas industry and the pipeline space, it maintains a strategy to continue driving new sales and maintaining positive cash flow."
The Corporation would also like to announce that it has negotiated a debt conversion agreement (the "Debt Agreement") with an arm's length creditor (the "Creditor"). Pursuant to the terms of the Debt Agreement, The Corporation has agreed to issue an aggregate of 2,000,000 units (the "Debt Units") to the Creditor in exchange for the cancellation of an aggregate of $100,000 in debt owning to the Creditor.
The Debt Units are being issued at a deemed price of $0.05 per unit and each unit is comprised of one (1) common share ("Debt Shares") and one (1) common share purchase warrant ("Debt Warrant"). Each Debt Warrant entitles the holder thereof to acquire one (1) common share of the Corporation at an exercise price of $0.10 per share at any time for a period of one (1) year from date of issuance.
The issuance of the Debt Shares and Debt Warrants are subject to the approval of the TSX Venture Exchange.
About the Corporation:
Through its wholly owned subsidiaries, Marcon and Fox-Tek Canada Inc. ("Fox-Tek"), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.