Entrec Transportation Services Ltd.
TSX VENTURE : ENT

November 03, 2011 08:00 ET

Entrec Completes Acquisition of TRAK Equipment Haulers and Closes Purchase of Real Estate Assets

SPRUCE GROVE, ALBERTA--(Marketwire - Nov. 3, 2011) - Entrec Transportation Services Ltd. (TSX VENTURE:ENT) ("ENTREC") is pleased to announce it has completed the previously announced acquisition of the business and assets of TRAK Equipment Haulers ("TRAK"). TRAK is based in Edmonton, Alberta and specializes in the transportation of over-sized and overweight equipment within the oil and gas and construction industries. TRAK's fleet, which consists of over 40 trucks and specialized trailers as well as additional support and ancillary equipment, will be integrated into ENTREC's existing Spruce Grove division.

The aggregate purchase price paid on closing was $3.35 million and was paid through a combination of: (i) the issuance of 777,778 common shares of ENTREC issued at a deemed price of $1.35 per share; and (ii) the remainder in cash.

Acquisition of Real Estate Assets

ENTREC also announces it has completed the previously announced acquisition of certain real estate assets used in the ENTREC business from Flint Energy Services Ltd.

The aggregate purchase price paid of $5.40 million was financed through a combination of: (i) a $3.75 million term loan from Canadian Western Bank, (ii) the release of a $1.0 million deposit; and (iii) the remainder in cash. ENTREC's intention is to pursue a sale lease-back of the real estate assets acquired.

About ENTREC

ENTREC 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 ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT".

Forward-looking statements

This press release contains forward-looking statements which reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC 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 ENTREC's control.

Examples of such forward-looking statements in this press release relate to, but are not limited to, ENTREC's intention to complete a sale lease-back of the real estate assets acquired. There is no certainty that a sale lease-back transaction will be completed in the future or if completed, on terms that are favorable to ENTREC. 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

  • Entrec Transportation Services Ltd.
    Rod Marlin
    Chairman & CEO
    (780) 960-5647

    Entrec Transportation Services Ltd.
    John M. Stevens
    President & COO
    (780) 960-5625

    Entrec Transportation Services Ltd.
    Jason Vandenberg
    CFO
    (780) 960-5630