IROC Sells Oricomm Division Assets to Firemaster Oilfield Services
IROC has entered into a definitive agreement with Firemaster Oilfield Services Inc. to dispose of IROC's Oricomm division assets for $3.64 million. The assets include all air quality monitoring, safety and communications associated equipment and inventories currently operated by IROC's Oricomm division at its facility based out of Red Deer, Alberta. On closing IROC will receive $3 million, with the balance of $640,000 to be paid on or before the third anniversary of the closing of the transaction. The transaction is expected to close on February 26, 2009.
It is anticipated that substantially all of the Oricomm employees will be offered employment by Firemaster as they look to build upon the Oricomm assets and business to expand their existing operations.
This transaction allows IROC to further reduce its outstanding indebtedness, strengthen its balance sheet and will provide IROC increased
financial flexibility in its ongoing operations.
Tom Alford, President and CEO, commented, "We are pleased to announce this transaction as it will allow us to continue to focus our efforts on our core business operations to provide the greatest potential return for the benefit of all stakeholders in IROC." Mr. Alford further commented that "while Oricomm has been a consistent contributor to IROC's bottom line through its efficient operations, the capital requirements to further grow this relatively small division within IROC did not align with IROC's overall goals. However, we firmly believe that Firemaster will take Oricomm's business to the next level for the benefit of its employees and customers."