Divestco Inc.

Divestco Inc.

March 25, 2015 17:44 ET

Divestco Announces Sale of Assets and Repayment of Debt

CALGARY, ALBERTA--(Marketwired - March 25, 2015) - Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE:DVT) is pleased to announce it has sold its Land Software assets (LandRite, iLand and MapQ) to Pandell Technology Corporation ("Pandell"), a pioneer of Software-as-a-Service (SaaS) industry solutions for cash proceeds (the "Transaction"). The Company entered into a definitive asset purchase agreement with Pandell dated March 25, 2015. All accounts receivable, liabilities and other working capital associated with the business prior to the sale were retained by Divestco.

A portion of the total proceeds from the Transaction were used to fully repay a short-term secured loan with Invico Diversified Income Fund in the amount of $4.5 million. The loan was due on March 31, 2015. Divestco intends to use the remaining proceeds for working capital purposes.

Stephen Popadynetz, CEO and President of Divestco: "As previously communicated, Divestco has been looking for methods to reduce its overall debt and to focus its business on its core product lines. This deal fulfills both objectives and allows our Land Software employees to join a focused land software team at Pandell. This will be a significant benefit to Pandell, Divestco, our employees and most importantly, our land customers."

No finder's fees have been paid in connection with the Transaction. The Transaction is an arm's length transaction as the directors, officers and principal shareholders of the Company currently have no interest in Pandell.

About the Company

Divestco provides innovative geoscience solutions to Energy and Service companies worldwide. Our customers predominantly operate in geology, geophysics, land and engineering and we work with our clients to ensure they have the right solutions, at the right time, to help them make more informed decisions. Commitment, innovation, accountability and agility form the cornerstone of our values and enable us to consistently provide reliable solutions and exceptional, personalized service in all of the core areas in which we operate. Divestco provides Software & Data, Seismic Processing, Geomatics Services, Seismic Data & Brokerage, and Land Services. Divestco is headquartered in Calgary and trades on the TSX Venture Exchange under the symbol "DVT".

Additional information on the Company is available on its website at divestco.com and on SEDAR at sedar.com.

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 news release.

Forward-Looking Information and Statements

Certain statements in this press release may include "forward-looking" information or statements, which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Divestco to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or statements. When used in this press release, such statements may use such words as "intends", "will", "may", "expect", "anticipate" "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in continuous disclosure documents filed by Divestco with securities regulatory authorities. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Divestco to be materially different from those contained in forward-looking information or statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Divestco does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    CEO and President

    Divestco Inc.
    Mr. Danny Chiarastella