Entrec Corporation

Entrec Corporation

June 07, 2012 16:13 ET

Entrec Shareholder Files Early Warning Report

SPRUCE GROVE, ALBERTA--(Marketwire - June 7, 2012) - As announced on June 6, 2012, ENTREC Corporation (TSX VENTURE:ENT) ("ENTREC") closed its acquisition of the Mains Group of Companies ("Mains Group") on June 5, 2012. As a result of that transaction, Mr. William Elkington, of Edmonton, Alberta, through his shareholdings in J.V. Driver Corporation Inc. ("JV Driver"), acquired beneficial ownership and control over 15,150,000 common shares of ENTREC representing 19.49% of ENTREC's issued and outstanding common shares. The common shares were issued to JV Driver at a deemed issue price of $1.35 per share as part payment of the purchase price paid by ENTREC for the Mains Group under a Share Purchase Agreement dated effective June 1, 2012, between JV Driver and Elkington Construction Company Limited, together as vendors, Mr. Elkington, as principal, and ENTREC as purchaser. Upon closing of the acquisition, ENTREC also granted 15,150,000 common share purchase warrants (the "Warrants") to JV Driver, each Warrant entitling JV Driver the right to acquire one common share of ENTREC at an exercise price of $1.50 per common share at any time from June 1, 2013 to May 31, 2014 (the "Expiry Date") provided that JV Driver shall not, at any time, be entitled to exercise any portion of the Warrants that would result in JV Driver, together with affiliated entities of JV Driver, owning 20% or more of ENTREC's issued and outstanding common shares. If upon the Expiry Date, any portion of the Warrants is not exercisable because such exercise would result in JV Driver, together with affiliated entities of JV Driver, owning 20% or more of ENTREC's issued and outstanding common shares, then the Expiry Date of such portion of the Warrants shall be extended by a period of one year, provided that the Expiry Date may not be extended beyond June 1, 2017. Mr. Elkington had no previous direct or indirect interest in ENTREC. Additional common shares may be purchased on the open market from time to time. Since Mr. Elkington acquired control or direction over more than 10% of the issued and outstanding common shares of ENTREC he was required to file an early warning report on SEDAR and he did so today disclosing substantially the same information included in this press release.

ENTREC specializes in the lifting, transportation (over the road and on-site), loading, off-loading and setting 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".

Neither 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 Corporation
    Rod Marlin
    Chairman & CEO
    (780) 960-5647

    ENTREC Corporation
    John M. Stevens
    President & COO
    (780) 960-5625

    ENTREC Corporation
    Jason Vandenberg
    (780) 960-5630