Divestco Inc.

Divestco Inc.

January 10, 2011 18:23 ET

Divestco Announces Second Closing of Private Placement of Units and Correction to Amounts Subscribed to by Directors and Officers

CALGARY, ALBERTA--(Marketwire - Jan. 10, 2011) - DIVESTCO INC. (TSX VENTURE:DVT) ("Divestco" or the "Corporation"), announces that it has issued an additional 454,546 units ("Units") at a price of $0.22 per Unit for gross proceeds of $100,000.12 as part of its previously announced private placement (the "Offering"). The Corporation received approval from the TSX Venture Exchange to increase the Offering to 16,363,636 Units for gross proceeds of up to $3,600,000.00 from the previously approved amount of up to 15,909,090 Units for gross proceeds of up to $3,500,000.00. Total proceeds raised were $3,581,547.86, made up of 16,279,763 Units.

Each Unit is comprised of one Class A share of Divestco (the "Share") and one non-transferable share purchase warrant (the "Warrant"). Each Warrant entitles the holder to purchase one Share on or before December 31, 2012 at an exercise price of $0.32 per Share. The shares and the warrants, and any shares issued on exercise of the warrants are subject to a hold period under applicable Canadian securities laws and polices of the TSX Venture Exchange and the Offering is subject to the final approval of the TSX Venture Exchange.

The Corporation also announces a correction to the number of units subscribed for by Directors and officers. Directors and officers subscribed for 9,865,214 Units for gross proceeds of $2,170,347.08. The Corporation previously announced that Directors and officers had subscribed for 8,908,850 Units for gross proceeds of $1,959,947.00.

The Corporation intends to use the proceeds of the financing for working capital purposes and to partially fund a seismic program.

About Divestco Inc.

Divestco is an exploration services company that provides a comprehensive and integrated portfolio of data, software, and services to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco's breadth of data, software and services offers customers the ability to access and analyze the information required to make business decisions and to optimize their success in the upstream oil and gas industry. Divestco is headquartered in Calgary, Alberta, Canada and trades on the TSX Venture Exchange under the symbol "DVT".

Statements in this document that may be considered forward-looking are based on management's current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.

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.

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    Chief Executive Officer
    Divestco Inc.
    Mr. Roderick Chisholm
    Chief Financial Officer