Destiny Announces Oilfield Service Business Acquisition and New Financing.CALGARY, Alberta--(BUSINESS WIRE)--May 12, 1999-- Destiny Resource Ser(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DSC (1) (Digital Signal Controller) A microcontroller and DSP combined on the same chip. It adds the interrupt-driven capabilities normally associated with a microcontroller to a DSP, which typically functions as a continuous process. See microcontroller and DSP. .) (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :DSC.) Destiny Resource Services Corp. ("Destiny") announced today that it has entered into an agreement to purchase certain assets and the operations of D & D Fitzpatrick Contracting Co. Ltd., a 20 year old privately held road & wellsite construction company, based in Rycroft, Alberta Rycroft is a village in northern Alberta, Canada. It is located 68 km north of the city of Grande Prairie and 7 km east of Spirit River. Dunvegan Provincial Park is located 20 km north of the community. . The purchase price will consist of $2.5 million in cash, 200,000 common shares of Destiny and a vendor take back loan of $0.5 million. For the year ending May 31, 1998, Fitzpatrick generated unaudited revenues of $11.5 million and cash flow of $2.6 million. Adrian Erickson, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Destiny stated, "The purchase of the assets and operations of Fitzpatrick will significantly expand our wellsite construction business. Fitzpatrick operates in the gas rich area of northwestern Alberta and northeast British Columbia, with bases in Rycroft and Grand Prairie, Alberta and Fort St. John, British Columbia The City of Fort St. John is a small city in northeastern British Columbia, Canada. . This acquisition will result in increased utilization of Destiny's equipment from our operation bases in Manning and Fairview, Alberta. Fitzpatrick's busiest season is during the summer and fall which complements our existing operations whose busiest time is the winter, thereby providing greater balance to our operations and facilitating the cross utilization of resources." At the same time Destiny announced that it has received approval from Roynat Inc. on an additional $5 million term loan as well as a restructuring of the principal payments of its existing Roynat loan. The proceeds of the financing will be used to complete the purchase of Fitzpatrick and provide Destiny with approximately $2.5 million of additional working capital. Destiny Resource Services Corp. is a Calgary-based exploration service company providing essential integrated services to the seismic, exploration and production industries in Canada, the United States, Central and South America, the Middle East, Africa and Southeast Asia. Neither The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. nor the Alberta Stock Exchange has approved or disapproved of the information contained herein. |
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