Divestco Inc.

Divestco Inc.

March 28, 2006 14:58 ET

Divestco Inc. Announces Acquisition of a Division of a Service Company

CALGARY, ALBERTA--(CCNMatthews - March 28, 2006) - DIVESTCO INC. (TSX VENTURE:DVT) ("Divestco") is pleased to announce that it has entered into a Letter of Intent to acquire a division of a service company (the "Seller") for consideration of C$11.5 million plus assumption of certain liabilities (C$10.5 million in cash at closing and C$1 million in common shares of the Corporation to the Seller or its nominees) on the terms and subject to the conditions set out in an acquisition agreement to be entered into between the Corporation and the Seller.

This acquisition is conditional on the Corporation's due diligence, the execution of an acquisition agreement by the parties and the approval of the TSX Venture Exchange. Closing is scheduled to occur on or before May 2, 2006.

Divestco is an innovative software, data, services, brokerage and consulting company providing integrated solutions for the oil and gas industry. By implementing a strategy of integration between our software, services, and datasets, and potentially all three together, we are creating a unique set of offerings. 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.

Divestco Inc. was recognized as a TSX Venture 50™ company in 2005. TSX Venture 50 is a trademark of TSX Inc. and is used under license. The TSX Venture 50™ are the top 10 companies in each of five major industry sectors - mining, oil & gas technology, life science and diversified industries - based on a ranking formula with equal weighting given to one-year revenue (last reported 12 months), return on investment, market cap growth and trading volume. All data was as of August 31, 2005. The 2005 TSX Venture 50™ is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange. TSX Group Inc. and its affiliates do not endorse or recommend any securities referenced in this ranking. Neither TSX Group Inc. nor its affiliated companies represent, warrant or guarantee the accuracy or the completeness of the information. You should not rely on this information contained herein for any trading, business or financial purposes. TSX Group Inc. and its affiliates assume no liability for any errors or inaccuracies herein or any use or reliance upon this information.

The TSX Venture Exchange has not reviewed nor accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    Chief Executive Officer
    (403) 218-6466
    Divestco Inc.
    Mr. Roderick Chisholm
    Chief Financial Officer
    (403) 218-6450
    Website: www.divestco.com