West Mountain Obtains US$7 Million Strategic Investment from Jereh Energy Services
31 Marzo 2014 - 12:25PM
Marketwired
West Mountain Obtains US$7 Million Strategic Investment from Jereh
Energy Services
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Mar 31,
2014) - West Mountain Capital Corp. (TSX-VENTURE:WMT) (the
"Company" or "West Mountain") announces that its transaction with
Jereh Energy Services Corporation ("Jereh") of Yantai, China has
closed, with Jereh having made a US$7 million investment in the
Company. The investment was comprised of the sale to Jereh of (i)
15,474,074 common shares of the Company at the price of C$0.27 per
share for proceeds of C$4,178,000 and (ii) a 6.5% secured
convertible bond (the "Bond") of the Company in the aggregate
principal amount of US$3,000,000 issued at par. The Bond and
accrued interest is due and payable on the second anniversary of
the closing date. The principal amount of the Bond is convertible
at the option of Jereh prior to maturity at the conversion prices
of C$0.32 and C$0.50 per share during the first year and second
year of its term respectively.
"This is a significant milestone for West Mountain Capital, not
only did we secure a substantial investment for the Company but we
also secured a very strong industry partner in Jereh who will open
up additional markets for us in China and beyond," said Paul Antle,
President and CEO. "Jereh also provides us with superior
manufacturing capability in China for our proprietary Thermal Phase
Separation technology. We cannot overstate the importance of our
partnership with Jereh."
The Company will now focus on opportunities for the treatment of
hazardous industrial waste in the Chinese oil and gas industry with
Jereh through a Chinese joint venture company that is to be
incorporated in the coming days. WMT will also concentrate on
expanding its existing base of customers throughout China and
beyond for hazardous industrial sludge treatment and contaminated
soil remediation. Refer to the Company's news release dated
November 20, 2013 for additional information regarding the joint
venture company.
As a term of its investment in West Mountain, Jereh is entitled
to nominate two persons for election as directors of the Company.
Mr. Wang Kunxiao, President and CEO of Jereh, and Ms. Cloris Chen,
Vice President of Jereh, were appointed as directors of the Company
at the closing of the transaction. "We are excited and pleased to
hold ownership in West Mountain giving us access to world class
clean technology that has many applications in China," said Mr.
Wang Kunxiao, "West Mountain's thermal technology experience and
expertise is among the best in the world."
Mr. Steven Thompson and Mr. John Wiebe, long-serving directors
of the Company, resigned to allow for the appointments of Mr.
Kunxiao and Ms. Chen. The Company is very grateful for the support
and good counsel of Mr. Thompson, a founding director of WMT, and
Mr. Wiebe who joined the Board in 2007. Both gentlemen were
instrumental in helping the Company achieve its objectives over the
past number of years.
As is customary for transactions of this nature, the completion
of the Transaction is subject to the completion of normal course
post-closing filings with the TSX Venture Exchange.
About West Mountain
West Mountain is an established Canadian environmental solutions
company specializing in the thermal treatment of a variety of
hazardous and non-hazardous waste streams. It employs a unique
indirectly heated, closed loop technology that allows it to extract
even the most hazardous contaminants from soil, industrial sludge,
pharmaceutical waste and consumer waste streams converting much of
it into reusable oil and synthetic natural gas that it uses to
sustain the process. This methodology offers significant
opportunity for greenhouse gas reduction over traditional hazardous
waste destruction technologies. The Company's management team
maintains expertise in hazardous waste management, Brownfield
remediation and pharmaceutical waste management with experience
spanning North America and 15 countries internationally.
About Jereh
Jereh Energy Services Corporation is wholly owned by Yantai
Jereh Group, a public company listed on the Shenzhen Stock Exchange
(002353:CH) with a market cap of over US$7.0 billion. The company
is focused on providing oilfield engineering, technology services
and environmental services to the Chinese oil and gas industry.
Jereh has subsidiaries in Houston, Calgary, UAE, Kazakhstan and
Indonesia.
Forward-Looking Statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. In particular, this news release
contains forward-looking information regarding the transaction with
Jereh. The forward-looking statements and information are based on
certain key expectations and assumptions made by West Mountain.
Although West Mountain believes that the expectations and
assumptions on which such forward-looking statements and
information are based are reasonable, undue reliance should not be
placed on the forward-looking statements and information because
West Mountain can give no assurance that they will prove to be
correct.
Since forward-looking statements and information address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. Factors which could materially affect such forward-looking
information include the failure to satisfy the closing conditions
described in this news release and other factors that are described
in the risk factors in the Company's most recent annual
management's discussion and analysis that is available on SEDAR at
www.sedar.com. The forward-looking statements included in this news
release are expressly qualified by this cautionary statement. The
forward-looking statements and information contained in this news
release are made as of the date hereof and West Mountain undertakes
no obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts the
responsibility for the adequacy or accuracy of this
release.
West Mountain Capital Corp.Mr. Paul AntlePresident and CEO709
726 0336pantle@phaseparation.comwww.phaseparation.com
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