Kodiak to sell reclamation division to former v-p
CALGARY, ALTA-Kodiak Energy Services has agreed to sell its reclamation division to Gregory Wadsworth and Sandra Wadsworth, under an asset purchase agreement effective November 1, 2004. Kodiak will receive $1.28 million for the division, payable in cash and shares. The terms of the agreement also commit the Wadsworths, as purchasers, to assume all of Kodiak's obligations under operating leases relating to the division and under certain sponsorship and lease arrangements. Concurrent with the execution of the agreement, Mr. Wadsworth has resigned as a director and as vice-president, reclamation, of Kodiak. Company president Gregory Gallelli said the sale of the reclamation division will enable Kodiak to reduce its debt and return to profitability so that it can focus more effort on its site remediation and waste transportation lines of business. "The growth in revenues by focusing on the site remediation and waste transportation lines of business should be offset by or be greater than any revenues lost by the sale of the reclamation division," he added. The transaction is subject to a number of conditions including approvals from the TSX Venture Exchange and other regulatory authorities and, if necessary, shareholder approval. Kodiak provides oilfield and environmental services to clients throughout Alberta and northeastern British Columbia. Based in Calgary, the company has offices in Edmonton and Sexsmith, Alberta and in Fort St John, BC. More information is available from Gregory Gallelli at 403/257-4556, E-mail email@example.com.