CALGARY, ALBERTA--(Marketwire - Feb. 20, 2013) - Poseidon Concepts Corp. ("Poseidon" or the "Company") (TSX:PSN) provides the following update with respect to its business and operations.
As previously announced on February 14, 2013 the Company has determined that the first, second and third quarter 2012 financial statements (the "Financial Statements") must be restated.
As a result the Company is currently in default under its loan agreement dated June 29, 2012. The Company is in discussions with its syndicate of lenders regarding short and long term support which is subject to negotiation, credit approval and revised loan terms, which are yet to be determined.
In addition, as a result of the requirement to restate the Financial Statements, the Alberta Securities Commission (the "Commission") has issued a cease trade order against the Company. The cease trade order prohibits all trading or purchasing in Company securities until the cease trade order has been revoked or varied by the Commission.
This news release contains certain forward-looking statements and other information (collectively "forward-looking information") about our current expectations, estimates and projections. Forward looking information is often identified by words such as "anticipate", "intend", "believe", "expect", "plan", "forecast", "target", "could", "focus", "vision", "goal", "proposed", "scheduled", "milestone", "outlook", "potential", "may", "looking forward to", or similar expressions and includes, but is not necessarily limited to, suggestions of future outcomes, including statements about the restatement of the Company's financial statements and the timing and completion thereof, the negotiations, credit approval and revised loan terms with the Company's lenders. Readers are cautioned not to place undue reliance on forward-looking information as our actual results may differ materially from those expressed or implied in the forward- looking information. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Poseidon and others that apply to the industry generally. The factors or assumptions on which the forward-looking information is based include without limitation: the restatement of the Company's financial statements and the contents thereof, the results of the Special Committee's investigation, the outcome of the negotiations with the Company's lenders, the outcome of litigation involving the Company, our ability to generate sufficient cash flow from operations to meet our current and future obligations; our expectations of the demand for tank systems and other product offerings and the general activity of the oil and gas industry; and assumptions inherent in our current guidance, including: foreign exchange and interest rates; our projected capital investment levels; the flexibility of capital spending plans and the associated source of funding; and other risks and uncertainties described from time to time in the filings we make with securities regulatory authorities. Actual results could differ materially from those currently anticipated due to a number of factors, risks and uncertainties. Such risks and uncertainties include, without limitation, risks associated with the outcome of the Special Committee's review, the contents of the Company's restated financial statements, litigation involving the Company, risks associated with dependence on manufacturers of the Poseidon tank systems; operating risk liability; demand for Poseidon's tank systems;
levels of competition in the fracturing fluid storage industry; the ability of Poseidon to attract and retain clientele; the impact of changes in marketing initiatives; the ability of Poseidon to fund its ongoing capital requirements; delays resulting from or inability to obtain required regulatory approvals; the impact of general economic conditions in Canada, the United States and globally; industry conditions; changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced; the lack of availability of qualified personnel or management; fluctuations in foreign exchange or interest rates; and stock market volatility. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributed to Poseidon or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on the foregoing risks and other factors that could affect Poseidon's operations and financial results are on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Poseidon does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information future events or otherwise, except as may be required by applicable securities laws.