Cordy Oilfield Services Inc.

Cordy Oilfield Services Inc.

January 09, 2015 14:01 ET

Cordy Obtains Loan

CALGARY, ALBERTA--(Marketwired - Jan. 9, 2015) - Cordy Oilfield Services Inc. ("Cordy" or the "Corporation") (TSX VENTURE:CKK) announces that it has borrowed $900,000 (the "Loan Amount") from Lyncorp International Ltd. ("Lyncorp") (the "Loan").

In addition, Cordy entered into a settlement agreement with Lyncorp pursuant to which a promissory note in the amount of $940,264.63 was issued to Lyncorp in settlement of $940,264.63 owed to Lyncorp. This represents the sum of the balance of the purchase price of $587,574.25 (the "Asset Purchase Amount") remaining payable by Cordy for heavy equipment purchased from Lyncorp as disclosed in a news release dated July 11, 2014, plus the outstanding rent owing to Lyncorp in the amount of $352,690.38 (the "Rental Amount") (together, the Asset Purchase Amount and the Rental Amount comprise the "Debt Settlement Amount.

The sum of the Loan Amount and the Debt Settlement Amount of $1,840,264.63 is due and payable on March 31, 2015 and bear interest at the rate of 15% per annum. Cordy granted a security interest in its accounts receivable in order to secure the repayment of $1,840,264.63. Cordy Environmental Inc., Cordy Manufacturing Inc., and Cordy Construction Inc., each a wholly-owned subsidiary of Cordy, have provided guarantees and security interests in their accounts receivable in support of the repayment of $1,840,264.63.

Cordy will use the proceeds of the Loan to repay part of the Corporation's current indebtedness and for general working capital purposes.

Lyncorp is wholly-owned and controlled by David Mullen, the Chief Executive Officer, Chairman, and a director of Cordy. Together, David Mullen and Lyncorp hold approximately 19% of Cordy's outstanding common shares. Cordy has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available for the Loan.

Additional information on Cordy is available on our website or on SEDAR at

Forward Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. All statements included herein, other than statements of historical fact, constitute forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of certain assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.

The intended use of the proceeds of the Loan by Cordy may change if the Directors of the Corporation determine that it would be in the best interests of Cordy to deploy the proceeds for some other purpose.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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