BlackWatch Energy Services Corp.

BlackWatch Energy Services Corp.

June 19, 2009 18:10 ET

BlackWatch Energy Services Corp. Provides Recapitalization Update

CALGARY, ALBERTA--(Marketwire - June 19, 2009) - BlackWatch Energy Services Corp. ("BlackWatch") (TSX:BWT) is pleased to announce the Toronto Stock Exchange ("TSX") has conditionally approved the previously announced private placement of 66.7 million shares at a price of $0.15 per share for gross proceeds of $10 million and the conversion of its existing subordinated debt of approximately $24.2 million at $0.65 per share into 37.1 million shares. After consultation with the TSX, BlackWatch was able to get shareholder approval in writing rather than relying on the financial hardship exemption as previously disclosed. The approval of the TSX is conditional upon approval in writing of a majority of the shareholders, excluding shareholders participating in the private placement or the conversion of the subordinated debt, and other normal filing conditions. BlackWatch has received written approvals from the requisite majority of shareholders. Closing of these transactions has been scheduled for June 29, 2009.

BlackWatch's Annual General Meeting is scheduled for June 25, 2009 at 10:00 a.m. in the Cardium Room of the Calgary Petroleum Club. Current management will provide an update on BlackWatch's existing activities at the meeting. BlackWatch looks forward to sharing the new vision of incoming management with all shareholders at a future date.


BlackWatch is a public energy services corporation operating in Western Canada and which trades on the Toronto Stock Exchange (TSX) under the symbol "BWT".

Note Regarding Forward Looking Statements

This news release contains forward-looking statements relating to the completion of the recapitalization. These statements are based on certain factors and assumptions regarding shareholder support of the recapitalization and parties ability to close the recapitalization. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. By their nature, forward-looking statements involve numerous risk and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation, risks associated with a failure to obtain the necessary shareholder approvals to complete the recapitalization, the ongoing participation of BlackWatch's current lenders, the failure to replace BlackWatch's existing credit facility, delays resulting from or inability to obtain required shareholder approvals and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive. Although BlackWatch believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this new release and BlackWatch does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Contact Information

  • BlackWatch Energy Services Corp.
    John R. King
    President and Chief Executive Officer
    (403) 225-3879
    (403) 366-2066 (FAX)
    BlackWatch Energy Services Corp.
    300, 855 - 8 Avenue SW
    Calgary, Alberta T2P 3P1