Divestco Inc.
TSX VENTURE : DVT

Divestco Inc.

September 26, 2005 11:50 ET

Divestco Inc. Announces C$10 Million in New Long-Term Debt Financing

CALGARY, ALBERTA--(CCNMatthews - Sept. 26, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

DIVESTCO INC. (TSX VENTURE:DVT) ("Divestco" or the "Company") is pleased to announce that it has secured $10 million in new long-term debt financing from Roynat Capital Inc. ("Roynat"). The funds will be primarily utilized to fund potential asset and share acquisitions and for general corporate purposes. As part of the arrangement, the Company issued 100,000 common shares to Roynat at a deemed price of $2.05 per share conditionally accepted for filing on August 5, 2005. The shares are subject to a hold period under applicable Canadian securities laws and polices of the TSX Venture Exchange expiring on January 23, 2006.

Mr. Stephen Popadynetz, Chief Executive Officer of the Company commented, "Divestco is pleased to enter into a new partnership with Roynat who has demonstrated they have a solid understanding of our industry and company. We look forward to a long successful business relationship."

Roynat is Canada's leading mid-market Merchant Bank and a member of the Scotiabank Group of companies. From providing traditional and non-traditional financing in the form of term loans, subordinated debt or equity, to providing strategic advisory services, Roynat, through its network of 21 offices across Canada and the U.S., helps clients grow their business, finance and execute mergers, acquisitions and divestitures, restructure debt and equity capital, or arrange strategic partnerships.

Divestco was formed on September 23, 2003 as a result of the amalgamation of International Datashare Corporation and Divestco.com Inc. Divestco is actively involved in the North American oil and gas software and services industry and markets over 20 separate software applications that are widely used in both North America and International marketplaces. The Company also operates a significant database containing information relevant to oil and gas exploration. Additionally, Divestco has an expanding seismic data library and is the largest broker of seismic data in Canada.

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
    or
    Divestco Inc.
    Mr. Roderick Chisholm
    Chief Financial Officer
    (403) 218-6450
    Website: www.divestco.com