Canadian Energy Services & Technology Corp.
TSX : CEU
OTCQX : CESDF

Canadian Energy Services & Technology Corp.

June 19, 2014 18:01 ET

Canadian Energy Services & Technology Corp. Announces Shareholder Approval of 3-For-1 Stock Split, Voting Results of the Election of Directors and Declaration of Cash Dividend

CALGARY, ALBERTA--(Marketwired - June 19, 2014) -

NOT FOR DISSEMINATION INTO THE UNITED STATES OF AMERICA OR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Canadian Energy Services & Technology Corp. ("CESTC" or the "Corporation") (TSX:CEU)(OTCQX:CESDF) announces that, at the annual and special meeting of shareholders held on June 19, 2014 (the "Meeting"), shareholders of the Corporation approved a stock split of the Corporation's issued and outstanding common shares (the "Common Shares") on a three-for-one basis. Additionally, at the Meeting, each of the eight nominees listed in the management information circular of the Corporation dated May 15, 2014 (the "Circular") were elected as directors of the Corporation.

Stock Split

The stock split has been approved by the board of directors of the Corporation and has been conditionally approved by the Toronto Stock Exchange, subject to the delivery of certain documents. The record date for the stock split is close of business on Friday, July 18, 2014. The payment date, being the date that additional Common Shares issuable as a result of the share split will be issued, will be on Wednesday, July 23, 2014.

The Toronto Stock Exchange requires the Corporation to implement due bill trading in connection with the stock split. A due bill is an entitlement attached to listed securities undergoing a material corporate action, such as a stock split. In this instance, the entitlement is to the additional Common Shares issuable as a result of the stock split. The Common Shares will trade on a due bill basis from July 16, 2014 to July 23, 2014, inclusive. Any trades that are executed on the Toronto Stock Exchange during this period will be flagged to ensure purchasers receive the entitlement to the additional Common Shares issuable as a result of the stock split. Ex-distribution trading in the Common Shares on a split-adjusted basis will commence on July 24, 2014. The due bill redemption date will be July 28, 2014.

For beneficial shareholders who hold their shares in an account with their investment dealer or other intermediary, their account will be automatically updated to reflect the stock split. Registered shareholders should retain their current share certificates, which will remain valid and continue to represent the number of Common Shares indicated on those certificates. Share certificates representing additional Common Shares issuable as a result of the stock split will be mailed to registered shareholders on or about July 23, 2014. The combination of the current share certificates and the additional share certificates will represent each shareholder's total post-split shareholdings.

Voting Results of Election of Directors

Based on the proxies received and on a ballot conducted at the meeting, the following individuals were elected as directors of the Corporation until the next annual shareholders' meeting:

Name of Nominee Votes cast
FOR
% of votes
cast FOR
Votes cast
WITHHELD
% of votes
cast WITHHELD
Colin D. Boyer 43,584,501 89.80 4,949,459 10.20
Rodney L. Carpenter 48,367,948 99.66 166,012 0.34
John M. Hooks 44,212,421 91.10 4,321,539 8.90
Kyle D. Kitagawa 43,833,602 90.32 4,700,358 9.68
Thomas J. Simons 48,367,948 99.66 166,012 0.34
D. Michael G. Stewart 43,833,762 90.32 4,700,198 9.68
Jason H. West 47,813,863 98.52 720,097 1.48
Burton J. Ahrens 47,262,065 97.38 1,271,895 2.62

All other resolutions provided for in the Circular were duly passed and a report on the voting results has been filed today with the Canadian securities regulatory authorities at www.sedar.com.

Dividend Declared

In addition, CESTC announces today that it will pay a cash dividend of $0.075 per common share on July 15, 2014 to shareholders of record at the close of business on June 30, 2014. For greater clarity, the cash dividend to be paid on July 15, 2014 will be paid on a pre-split basis. Future dividends approved by the Corporation's board of directors will reflect the three-for-one stock split.

About Canadian Energy Services & Technology Corp.

CESTC is a leading provider of technically advanced consumable chemical solutions throughout the life-cycle of the oilfield. This includes solutions at the drill-bit, at the point of completion and stimulation, at the wellhead and pump-jack, and finally through to the pipeline and midstream market. CESTC's business model requires limited re-investment capital to grow. As a result, CESTC has been able to capitalize on the growing market demand for drilling fluids and production and specialty chemicals in North America while generating free cash flow. CESTC returns much of this free cash flow back to shareholders through its monthly dividend. Additional information about CESTC is available at www.sedar.com or on the Corporation's website at www.CanadianEnergyServices.com.

Forward Looking Information

This press release contains certain forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes, without limitation, forward-looking information relating to the stock split, including the record date, the payment date, the due bill trading dates, the ex-distribution date, the due bill redemption date, future dividend payments and the mailing date of share certificates. CESTC believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to CESTC, and in particular certain forward looking information in this press release is based on the assumption that the conditions of the TSX can be satisfied and the TSX will grant final approval in respect of the stock split.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause CESTC's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties include but are not limited to the risks identified in CES' Annual Information Form for the year ended December 31, 2013 under the heading "Risk Factors". Any forward-looking information is made as of the date hereof and, except as required by law, CESTC assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Canadian Energy Services & Technology Corp.
    Tom Simons
    President and Chief Executive Officer
    (403) 269-2800

    Canadian Energy Services & Technology Corp.
    Craig F. Nieboer, CA
    Chief Financial Officer
    (403) 269-2800
    info@ceslp.ca
    www.CanadianEnergyServices.com