Cordy Oilfield Services Inc.

Cordy Oilfield Services Inc.

March 24, 2006 09:00 ET

Cordy Closes Private Placement of Debentures and Warrants for $4,000,000

CALGARY, ALBERTA--(CCNMatthews - March 24, 2006) - CORDY OILFIELD SERVICES INC. (the "Corporation")(TSX VENTURE:CKK) is pleased to announce that it has completed a private placement of unsecured non-convertible debentures ("Debentures") in the principal amount of $4,000,000, previously announced on March 2, 2006. The Debentures mature and are due and payable on March 22, 2008. The principal amount of the Debentures bears interest at the rate of 10% per annum, calculated and paid quarterly.

Each one dollar of principal amount of Debentures was accompanied with one-tenth of one common share purchase warrant of the Corporation (a "Warrant") for a total of 400,000 Warrants. Each whole Warrant entitles the holder to purchase one Common Share for a price of $3.52 per share for eighteen months from the closing date. All of the securities issued in connection with this private placement are subject to a four month restricted period that expires on July 24, 2006. The proceeds of the private placement are intended to be used by Cordy to fund future acquisitions. The private placement remains subject to TSX Venture Exchange final approval.

Akita International Ltd., a company owned and controlled by Kevin Mullen, a director of Cordy, subscribed for debentures in the total amount of $1,500,000. Jay Westman, a director of Cordy, subscribed for debentures in the total amount of $500,000. Cordy has determined that an exemption from the valuation and minority approval requirements of the Ontario Securities Commission Rule 61-501 is available as the debentures and warrants offered pursuant to the private placement and the consideration received by Cordy from the insiders and related parties does not exceed $2,500,000.

After giving effect to the private placement, Cordy has 50,839,519 common shares issued and outstanding.

Cordy Oilfield Services Inc. owns businesses in the oilfield services and construction sectors and is implementing a strategy of growth through acquisition.

The TSX Venture Exchange does not accept responsibility for the accuracy or adequacy of this release.

Contact Information

  • Cordy Oilfield Services Inc.
    Sid Dutchak
    President & CEO
    (403) 266-2067
    1 (866) 854-8075 (FAX)
    Cordy Oilfield Services Inc.
    David Orr
    Vice President - Corporate Development