SOURCE: Divergent Energy Services Corp.

DIVERGENT Energy Services Corp.

March 22, 2016 11:05 ET

DIVERGENT Energy Services Corp. Announces Closing of First Tranche of Private Placement

CALGARY, ALBERTA--(Marketwired - March 22, 2016) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

DIVERGENT Energy Services Corp. ("Divergent" or the "Corporation"(TSX VENTURE: DVG) announces that further to its press release dated February 18, 2016, it has completed the first tranche of a non-brokered private placement for 619,730 common shares of the Corporation (the "Common Shares") at a price of $0.27 per Common Share for aggregate gross proceeds of $167,325. Divergent expects to raise an aggregate of $550,000 pursuant to the Private Placement and close additional tranches during the second quarter of 2016. 

Insiders of the Corporation have participated in $72,825 (or 44%) of the first tranche of the Private placement.

Divergent paid a commission or finder's fee to qualified non-related parties of 6% of the gross proceeds which amounted to $3,075.

The proceeds of the Private Placement will be used for the order and purchase of additional second-generation Linear Electric Submersible Pumps (the "Pump"), operating expenses associated with the Pumps, and general working capital purposes. The purchase of the additional Pumps will fulfill the Corporation's obligation under the existing supply arrangement with the manufacturer, which required payment in full prior to shipment. Upon fulfillment of this obligation, the manufacturer has committed to offering Divergent more favourable commercial terms, which would be contingent upon successful deployment of the next shipment of Pumps.

Completion of the Private Placement is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange Inc. The Common Shares issued will be subject to a four month hold period from the date of closing of the Offering. Following closing of the first tranche of the Private Placement, the Corporation will have 94,945,189 Common Shares issued and outstanding.

ABOUT DIVERGENT ENERGY SERVICES CORP.

Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of artificial lift products and services that are used in the oil and gas industry, including its revolutionary second-generation Linear Electric Submersible Pump. Divergent's Pump is approaching commercialization and is targeted to replace traditional oil pumpjacks. Other Divergent products currently in use by its oil and gas industry customers include Electric Submersible Pumps and Electric Submersible Progressing Cavity Pumps.

Neither the 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.

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the use of proceeds and the closing of the private placement including the Corporation's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are 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 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 www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Contact Information

  • DIVERGENT Energy Services Corp.
    Ken Berg
    Director, President and Chief Executive Officer
    (403) 543-0060
    (403) 543-0069 (FAX)


    DIVERGENT Energy Services Corp.
    Scott Hamilton
    Chief Financial Officer
    (403) 543-0060
    (403) 543-0069 (FAX)
    www.divergentenergyservices.com