Divestco Inc.

Divestco Inc.

August 18, 2005 15:45 ET

Divestco Inc. Announces Closing of C$10 Million Private Placement

CALGARY, ALBERTA--(CCNMatthews - Aug. 18, 2005) -


DIVESTCO INC. (TSX VENTURE:DVT) ("Divestco") is pleased to announce that it has closed a previously announced private placement with First Associates Investments Inc. pursuant to which the lead underwriter, together with Northern Securities Inc. (collectively, the "Underwriters"), purchased 4,500,000 Units, at a price of $2.00 per Unit. The Underwriters also exercised their overallotment option to purchase an additional 500,000 Units at $2.00 per Unit. Divestco received net proceeds of $9.3 million. Each Unit consists of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder to acquire a common share at a price of $2.50 at any time on or before August 18, 2007. The Underwriters were also granted 350,000 options to acquire common shares of Divestco at an exercise price of $2.00. Each option entitles the holder to acquire one common share of the Company and expires on August 18, 2007

The shares, the warrants, and the options, and any shares issued on exercise of the warrants and options (collectively, the "Securities") will be subject to a hold period under applicable Canadian securities laws and polices of the TSX Venture Exchange expiring on December 19, 2005.

The proceeds raised from the offering shall be used by Divestco to fund capital expenditures and for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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. Divestco trades on the TSX Venture Exchange under the symbol "DVT".

Forward Looking Statements

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.

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