IRW-Press: Ridgeline Energy Services: Update On Closing Of The Santa Fe Springs Acquisition



Published on 06 February 2013

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by Press Office

(IRW-PRESS and WireNews+Co)

Vienna, Austria


Ridgeline Energy Services Inc. ('Ridgeline' or the 'Company') (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) an energy services and water treatment technology company, provides the following update regarding the Santa Fe Springs facility.

In accordance with the terms of transaction between Ridgeline and Lakeland Development Company and Lakeland Processing Company Ridgeline has placed $3,000,000 in cash and Ridgeline stock into escrow with the land title company First American Title Insurance Company.

One of the conditions of closing is that Ridgeline is to receive confirmation that operating and discharge permits would be granted or transferred at closing. These permits are from the Los Angeles Sanitation Department (Discharge Permit) the Conditional Use Permit (CUP) from the City of Santa Fe Springs. Ridgeline has been issued a Discharge Permit and also received a letter from the City of Santa Fe Springs indicating the CUP will transfer on closing of the transaction.

Final distribution of funds to the Vendor and other beneficiaries is expected to occur once the Bankruptcy Court Judge has approved the distribution of funds. Ridgeline expects that this final step can occur within 14 to 16 days.

Tony Ker, Ridgeline CEO stated “Our Santa Fe Springs facility continues to grow in both revenue and profit performance. We have successfully installed three additional water treatment units and now stand ready to increase volume and opportunity”.

Ridgeline also announces a Management Agreement with Consolidated Water Treatment of Missouri (CTM). Ridgeline will provide contracting services for the collection, treatment and disposal of industrial waste water in Carthage Missouri. All the water handled under this management agreement will be processed for beneficial use and discharge. Oils and other effluent will be extracted for agriculture and energy industries.

The purpose of The Management Agreement is to allow RLE to manage CTM while a definitive agreement to purchase a majority interest of CTM by RLE is drafted and expected to be executed in February 2013. The Agreement took effect on December 1st, of last year, and was held as confidential between the parties until permanent management from Ridgeline could be put in place.

CTM receives industrial water from a wide variety of waste producers. The initial facility was constructed several years ago to create a state of the art facility for processing industrial waste water byproducts. Ridgeline water processing equipment will allow the facility to more than double in capacity and revenue over the next 12 to 18 months.

Dennis M. Danzik (Founder of the Ridgeline water treatment technology) was engaged to manage the facility by banking and investor interests of CTM. Since early December Mr. Danzik has been applying waste water handling knowhow to the CTM operation in order to determine if the combination of Ridgeline’s processes and management could improve the operation. Since December 1st 2012, results have been impressive with a marked improvement in the operating and financial performance of the CTM facility. Significant further gains in both annual revenue and earnings are possible throughout 2013.

Ridgeline has used the Management Agreement step successfully at the Santa Fe Springs facility in California which the acquisition that is expected to close imminently. It allows Ridgeline to do a much higher degree of diligence as the company has full access and visibility of financials, operating capabilities, customers and suppliers, all aspects of managing the facility are managed by Ridgeline. The Company has had independent auditors reviewing all financial records of CTM since December 2012 in preparation of a final agreement.

“The management of CTM instantly doubles the revenue size of Ridgeline and completes our vertical track of waste water to direct energy. In the coming months, we will continue to aggressively grow our industrial waste water opportunities. Facilities like CTM, and our Santa Fe Springs facility are perfect examples of a substantial Ridgeline future” stated Dennis M. Danzik.

Tony Ker, CEO of Ridgeline commented “Ridgeline views this as key step to providing an additional large scale site with equal to or better financial benefits than our Santa Fe Springs facility in California. It also provides our first complete opportunity to vertically integrate into the waste water collection, treatment, disposal and waste byproduct business.

About Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc. is an energy services and water treatment technology company. The Company is applying proprietary technology to treat water generated from industrial and commercial waste water markets. These markets include a wide variety of clients across a broad spectrum of industries including oil and gas. Through its environmental consulting and remediation divisions, Ridgeline Environment has built a reputation as an established provider of environmental services to the Western Canadian oil and gas industry. Ridgeline GreenFill provides soil remediation and wet waste disposal services to the oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol “RLE”, the OTCQX as “RGDEF” and the Frankfurt Stock Exchange as “RL7”.

For further information please contact:

Ryan Johnson of Ridgeline Energy Services Inc.
Corporate Development
(604) 566-8066 ext. 3 (Vancouver)
rjohnson@ridgelinecanada.com

David Waldman at Crescendo Communications
Investor Relations
(212) 671-1021 (New York)
dwaldman@crescendo-ir.com

Robert Blum, Joe Diaz or Joe Dorame
Lytham Partners, LLC
Investor Relations
(602) 889-9700 (Phoenix)
RLE@lythampartners.com

ON BEHALF OF THE BOARD OF DIRECTORS

“Tony Ker”

Tony Ker
CEO

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.”


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  • IRW-Press
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Posted 2013-02-06 09:21:00