EIS Capital Corp.
TSX VENTURE : EIE

EIS Capital Corp.

May 24, 2011 08:00 ET

EIS Capital Corp. Enters Into Letter of Intent to Acquire Diamond B Transport Ltd.

EDMONTON, ALBERTA--(Marketwire - May 24, 2011) - EIS Capital Corp. ("EIS Capital") (TSX VENTURE:EIE) is pleased to announce it has entered into a letter of intent, subject to certain conditions, to acquire the business and assets of Diamond B Transport Ltd. ("Diamond B"). Diamond B is based in Lloydminster, Alberta and specializes in the transportation of over-sized and over-weight equipment within the oil and gas, mining, construction, and manufacturing industries. Diamond B currently provides its services within the Provinces of Alberta and Saskatchewan.

"We are very pleased with the potential acquisition of Diamond B," comments Rod Marlin, EIS Capital's Chairman and CEO. "Diamond B is a well-established and profitable business in the heavy haul transportation industry. We believe this acquisition will be very complimentary to Entrec and will allow us to expand into the Lloydminster area."

The purchase price will be payable through a combination of: (i) the issuance of 1,250,000 common shares of EIS Capital; and (ii) $2,000,000 payable in cash. The acquisition is currently anticipated to close on or about July 4, 2011.

Completion of the proposed acquisition is subject to a number of conditions including, but not limited to, the completion of satisfactory due diligence by EIS Capital as well as approval of the Board of Directors of EIS Capital. Completion of the proposed acquisition is also subject to the receipt of any required regulatory approvals including, but not limited to, the approval of the TSX Venture Exchange.

About EIS Capital

EIS Capital specializes in the transportation and rigging of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of EIS Capital trade on the TSX Venture Exchange under the trading symbol "EIE".

Forward-looking statements

This press release contains forward-looking statements which reflect EIS Capital's current beliefs and are based on information currently available to EIS Capital. These statements require EIS Capital to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond EIS Capital's control.

Examples of such forward-looking statements in this press release relate to, but are not limited to, EIS Capital's ability to close the proposed purchase of Diamond B and EIS Capital's expectation that the Diamond B acquisition will meet its expectations and add shareholder value. These forward-looking statements rely on certain assumptions, including, among others, EIS Capital's ability to obtain regulatory approvals for the acquisition of Diamond B. In addition, the ability of the Diamond B acquisition to meet expectations and add shareholder value is dependent on the Diamond B business meeting or exceeding EIS Capital's internal revenue, net earnings, and cash flow forecasts for that business in the future. Such factors that may negatively impact EIS Capital's ability to achieve these forecasts include, but are not limited to, fluctuations in the demand for specialized transportation services, political and economic conditions, industry competition, and EIS Capital's ability to attract and retain both customers and key personnel. The statements in this press release are made as of the date of this release.

Neither the 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 release.

Contact Information

  • EIS Capital Corp.
    Rod Marlin
    Chairman & CEO
    (780) 962-1600

    EIS Capital Corp.
    John M. Stevens
    President & COO
    (780) 962-1600

    EIS Capital Corp.
    Jason Vandenberg
    CFO
    (780) 962-1600