CALGARY- New West Energy Services Inc. (TSXV: NWE), an oil and gas and environmental services company focused on Western Canada, today announced the closing of a previously announced agreement between NWE and its primary capital and equipment financing partner, Nations Equipment Finance of Norwalk, Connecticut, whereby Nations has acquired an equity stake in NWE.
Pursuant to the terms of the agreement, NWE issued to Nations 11,753,676 common shares in lieu of the repayment of $1,175,367.62 owing by NWE to Nations, and NWE replaced certain three-year warrants to purchase 1,200,000 common shares previously held by Nations with five-year warrants on the same terms.
As a result of the acquisition of the common shares, Nations holds approximately 27 percent of NWE’s common shares, and assuming the exercise of the warrants, Nations holds approximately 29 percent of NWE’s outstanding common shares. NWE’s largest shareholder and Lead Director, William A. Rand, holds beneficially approximately 31 percent of NWE’s outstanding common shares.
Under the agreement, Nations will have observer status on the NWE board of directors for so long as it beneficially owns more than 15% of the outstanding common shares of NWE.
All securities issued to Nations are subject to a hold period of four months and one day.