SYLVAN LAKE, ALBERTA--(Marketwired - Feb. 23, 2015) - Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or the "Company") a premier provider of Hydrovac and Vacuum truck services is pleased to announce that on February 20, 2015, it completed the acquisition of certain assets of Firehawk Services Ltd. ("Firehawk"), an arm's length Hydrovac service provider for total consideration of $2.73 million.
Firehawk started operations in 2010 in Fort McMurray, Alberta as a lease operator exclusively with Lonestar and is currently operating a fleet of 5 Hydrovac units. In calendar 2014, Firehawk generated Gross Sales of $5.99 million.
In addition, on February 20, 2015, a separate lease operator with one Hydrovac unit terminated the lease operator agreement and Lonestar purchased the Hydrovac unit using term debt.
"The acquisition of Firehawk's assets brings the Lonestar Lease Operator program to an end, reflecting Lonestar's maturation as a corporation," said James Horvath, CEO of Lonestar. "We believe that Lonestar is well positioned to deploy these assets into the corporate fleet. As of today's date Lonestar is operating a fleet of 142 corporately owned units."
In consideration of the acquisition of certain assets of Firehawk, the Corporation paid $2.48 million cash on closing using term debt. In addition, pursuant to the terms of the agreement the Company may be required to issue common shares of the Company to Firehawk on the anniversary date of the agreement for a period of 5 years. The total common shares issued at each anniversary date is equal to $50,000 divided by the average closing price 20 days prior to the anniversary date of the Company's common shares on the TSX Venture Exchange.
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar West Inc. (
www.lonestarwest.com) operates a fleet of 142 HVAC, vacuum, water and ancillary trucks throughout Western Canada and the United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
For more information please visit the Lonestar West website at
www.lonestarwest.com.
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