Formation Fluid Management Inc.

Formation Fluid Management Inc.

April 11, 2016 18:07 ET

Formation Fluid Announces Review and Consideration of Strategic Alternatives

CALGARY, ALBERTA--(Marketwired - April 11, 2016) - Formation Fluid Management Inc. (DBA Formation Fluid Technology Inc.) (TSX VENTURE:FFM) ("FFM" or the "Corporation") announces that the board of directors (the "Board") has initiated a strategic review process to identify, examine and consider a range of strategic alternatives available to FFM with a view to maximizing shareholder value. This process could result in a sale of the Corporation, a sale of a material portion of the Corporation's assets, a merger, business combination or a corporate reorganization, equity financing, among other alternatives.

The Board has established a special committee comprised of independent directors (the "Special Committee") who will work with management and the Corporation's external advisors to oversee the review of strategic alternatives. The Special Committee has a mandate to solicit, review and consider strategic alternatives and to consider and recommend to the Board whether any transaction is in the best interests of the Corporation and its shareholders. Canaccord Genuity Corp. has been engaged as exclusive financial advisor by the Board and will work with management of the Corporation, the Special Committee and the Board in connection with this comprehensive review and analysis of strategic alternatives.

FFM does not intend to disclose developments with respect to this review until the Board has approved a definitive transaction unless otherwise required by law or if such disclosure is deemed appropriate. The Corporation cautions that there is no guarantee that the strategic review will result in a transaction or if a transaction is undertaken, as to its terms or timing.

Trading in securities of the Corporation should be viewed as highly speculative.

About the Corporation

Formation Fluid Management Inc. has developed a three stage waste water treatment plant (Hydro-Cycle) that uses a proprietary process to clean waste water. Each plant is mobile and can process up to 1000 m3 of water per day. This system treats water to meet or exceed CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in reusable water that can be used for: Boilers, Frac Water, Water Floods, and Drilling Operations. Formation Fluids has identified commercial applications for the Hydro-Cycle system within the oil and gas industry. The waste water treatment system has a primary use to reduce producers' costs of dealing with produced water. The system also satisfies the need to reuse and recycle an increasing valuable resource.

About Canaccord Genuity Corp.

Canaccord Genuity Corp. (TSX:CF)(LSE:CF.), offers institutional and corporate clients idea-driven investment banking, merger and acquisition, research, sales and trading services from offices in 10 countries worldwide. Our team of nearly 1,000 capital market and advisory professionals has industry and transactional expertise in 18 key sectors of the global economy. We are committed to providing valued services to our clients throughout the entire lifecycle of their business and operation as a gold standard independent investment bank - expansive in resource and reach, but targeted in industry expertise, market forces and individual client attention.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


Statements in this news release may contain forward-looking information including the entering into of a strategic transaction. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements. The Corporation believes that the expectations reflected in the forward-looking statements contained in this news release are reasonable, but no assurance can be given that they will prove to be correct. Actual results and future events may differ materially from those anticipated and accordingly forward-looking statements should not be unduly relied upon. Forward-looking statements contained in this document speak only as of the date of this news release. Except as required by applicable law, Corporation disclaims any obligation to update any forward-looking information.

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