DIVERGENT Energy Services Corp.
TSX VENTURE : DVG

DIVERGENT Energy Services Corp.

February 18, 2016 09:00 ET

DIVERGENT Energy Services Corp. Announces Private Placement

CALGARY, ALBERTA--(Marketwired - Feb. 18, 2016) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

DIVERGENT Energy Services Corp. (TSX VENTURE:DVG) ("Divergent" or the "Corporation") announces that it intends to complete a non-brokered private placement of up to 2,037,037 common shares of the Corporation (the "Common Shares") at a price of $0.27 per Common Share for aggregate gross proceeds of up to $550,000 (the "Offering").

Divergent may pay a commission or finder's fee to qualified non-related parties of up to 6% of the gross proceeds of the Offering (up to $33,000).

The Proceeds of the Offering 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.

Insiders of the Corporation have committed to participate in no less than $100,000 of the Offering.

Completion of the Offering 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.

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

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