Divergent Energy Services Corp.
TSX VENTURE : DVG

Divergent Energy Services Corp.

April 25, 2016 09:00 ET

DIVERGENT Energy Services Corp. Announces Closing of Second and Final Tranche of Private Placement

CALGARY, ALBERTA--(Marketwired - April 25, 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 releases dated February 18, 2016 and March 22, 2016, it has completed the second and final tranche of a non-brokered private placement for 283,185 common shares of the Corporation (the "Common Shares") at a price of $0.27 per Common Share for aggregate gross proceeds of $76,460. Under two tranches, the Corporation has issued 902,915 common shares at $0.27 per common share for gross aggregate proceeds of $243,785.

Insiders of the Corporation have participated in $50,000 (or 65%) of the second tranche of the Private placement, bringing total insider (direct and indirect) participation to $122,827 (or 50%).

Divergent paid a commission or finder's fee to qualified non-related parties of 6% of the gross proceeds which amounted to $778 in the second tranche, bringing total finder's fees to $3,853.

The proceeds of the Private Placement are being used for the purchase and installation costs of additional second-generation Linear Electric Submersible Pumps (the "Pump"). The next shipment of Pumps is in transit and expected to arrive at the Company's Gillette, Wyoming facility on or about May 18. Upon receipt, Divergent will have one Pump shipped immediately to Canada for installation into the same southeast Saskatchewan client well that the previous Pump had been installed in. The remaining Pumps are being marketed to additional potential clients that have expressed interest in the technology.

The Pump that was recently removed from the client well has been fully examined and all critical parts show no indication of wear or damage. However, a seal situated at the top of the motor did indicate damage and will be returned to the manufacturer for replacement prior to reinstalling that Pump into a future client well.

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 Private Placement, the Corporation will have 96,740,395 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

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