01:54:04 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Lonestar West Inc
Symbol LSI
Shares Issued 29,158,053
Close 2015-08-14 C$ 1.24
Market Cap C$ 36,155,986
Recent Sedar Documents

Lonestar to acquire $1.3M (U.S.) of Hewitt assets

2015-08-17 16:41 ET - News Release

Mr. James Horvath reports

LONESTAR ANNOUNCES OKLAHOMA ACQUISITION

Lonestar West Inc. has arranged a strategic acquisition of certain assets of Hewitt Specialty Services LLC, an arm's-length hydrovac service company, for total consideration of $1.3-million (U.S.).

Hewitt started operations in 2010 and is currently operating a fleet of five hydrovac trucks and one dry vacuum truck in Cushing, Okla. The acquisition is expected to add approximately $2.9-million (U.S.) in annual revenues and increases Lonestar's operating fleet from 155 units to 161 units.

"The Hewitt acquisition is consistent with our corporate growth strategy. The addition of a base that services the Cushing, Okla., region will complement our existing base in Elk City, Okla., and expand our presence in the south-central United States," said James Horvath, chief executive officer of Lonestar. "Lonestar would also like to welcome Brad Hewitt to the company. Mr. Hewitt's experience in the Cushing area will be a valuable addition to our senior management team."

In consideration of the acquisition of certain assets of Hewitt, the corporation cancelled accounts receivable due from Hewitt of approximately $500,000 (U.S.) and issued unsecured promissory notes that mature over a five-year period totalling $500,000 (U.S.). The notes are non-interest bearing and subject to certain performance thresholds being achieved. In addition, 299,496 common shares of the company will be issued at a price of $1.31 per share for a total of $300,000 (U.S.) in the aggregate.

We seek Safe Harbor.

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