ACHESON, Alberta, Feb. 03, 2020 (GLOBE NEWSWIRE) -- ENTREC Corporation (“ENTREC” or the “Company”), a heavy haul transportation and crane solutions provider, today announced that it has reached an agreement with the landlord of its Fort McMurray location, FM Airport Industrial Park Ltd. (the “Landlord”) to enter into a month to month lease and terminate the existing long-term lease for that location.
Further to the agreement, (i) ENTREC paid all outstanding rental arrears owing to the Landlord and agreed to pay a further $2.9 million over 5 years; (ii) ENTREC issued the Landlord 18,000,000 common shares at a deemed price per share equal to the “market price” (as defined in the TSX Company Manual) of ENTREC’s common shares on the closing date ($0.06 per share); and (iii) ENTREC agreed to appoint one nominee of the Landlord to ENTREC’s Board of Directors.
The termination of the long-term lease will significantly reduce ENTREC’s operating costs in the Fort McMurray region. The lease previously required monthly payments of $269,000 (inclusive of operating costs) and was not due to expire until December 31, 2030. The new month-to-month lease amount is significantly less than the previous monthly payment.
As mentioned above, the Landlord, a corporation based in Edmonton, Alberta, acquired 18,000,000 common shares of ENTREC. Immediately prior to the transaction, the Landlord did not beneficially own, or exercise control or direction over, any common shares of ENTREC. Immediately after the transaction, the Landlord beneficially owned, or exercised control or direction over, 18,000,000 common shares of ENTREC representing 14.1% of the issued and outstanding common shares of ENTREC. As mentioned above, the common shares were acquired pursuant to the terms of an agreement between the Landlord and ENTREC to revise the terms of an existing lease arrangement. The Landlord has advised ENTREC that the common shares were acquired for investment purposes. The Landlord may purchase additional common shares of ENTREC or sell common shares of ENTREC presently held from time to time in one or more transactions in its discretion based on market conditions and other factors that it deems relevant. No assurances can be made as to the timing of any purchase or sale or that any such transaction will occur at all. This portion of the press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues which requires a report to be filed under ENTREC’s profile on SEDAR (www.sedar.com) containing additional information respecting the forgoing matters. To obtain a copy of that report go to ENTREC’s profile on SEDAR (www.sedar.com) or contact ENTREC as set out below.
ENTREC is a heavy haul transportation and crane solutions provider to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC is listed on the TSX under the symbol ENT.
For further information, please contact:
John M. Stevens - President & CEO
Telephone: (780) 960-5625
Jason Vandenberg – CFO
Telephone: (780) 960-5630