Dynastar Closes in on Harvie, Santa Rita's Securities
Dynastar Inc. has completed an acquisition of all of the issued and outstanding securities of Harvie Instruments Ltd. and Santa Rita Enterprises Inc. Harvie Instruments, in business since 1967, provides service to oil and gas production and service companies with instrumentation, calibration and rentals. Santa Rita markets industrial and oilfield supplies specializing in well testing and instrumentation equipment.
Pursuant to the Acquisition, Dynastar acquired 100% of the outstanding shares of Harvie and Santa Rita for a purchase price of $850,000 cash payment and $150,000 paid through the issuance of 1,500,000 common shares of Dynastar at the deemed price of $0.10 per share.
The total consideration for the Acquisition is $1,000,000. Upon completion of the Acquisition, Dynastar has 15,653,874 common shares outstanding (prior to the completion of any concurrent financing as outlined below). The transaction was an arm's length transaction.
The Acquisition remains subject to the acceptance of the TSX Venture Exchange (the "TSXV").
Dynastar also announces that it has closed the first tranche of a non-brokered private placement of 1,200,000 common shares issued at a price of $0.10 per Common Share for gross proceeds of $120,000. It is anticipated that up to another 800,000 Common Shares will be issued under the private placement on or before July 31, 2008. All of the Common Shares issued in connection with this private placement are subject to a four-month hold period from the date of issuance. The proceeds of the private placement were used primarily to fund the purchase price payable under the Acquisition. The private placement is subject to final TSXV acceptance.
Robin Vincent, President and CEO of the Corporation, has purchased 1,000,000 Common Shares of the private placement.