Wescorp Issues $3.7MM Equity for Cash and Debt Reduction
Wescorp has announced an interim closing of a non-brokered private placement of common shares and warrants ("Units") for an amount equal to $3,714,853. All funds are expressed in US dollars. The placement consisted of approximately $1.93 million of cash and $1.78 million of debt reduction. Wescorp issued a total of 9,287,133 Units in several tranches priced at $0.40 per Unit; each Unit was comprised of one common share and one non-transferable common share purchase warrant. Each warrant gives the holder the right to purchase one common share at a price of $0.60 for a period of 24 months from the date of issuance.
Cash proceeds from this private placement have been allocated to Wescorp's H2Omaxx water remediation technology division and for general corporate purposes.
During 2008, Wescorp received excellent independent analytical results from the H2Omaxx Water Remediation Technology field-testing program. These results confirmed that the patented H2Omaxx unit (formerly known as Total Fluid Solutions) economically increased the recovery of oil and reduced the amount of hydrocarbons in the treated produced water to less than ten parts per million (10 ppm). This innovative approach to water remediation is highly scalable permitting much greater output capacities in order to meet the potential applicable requirements of the customer. The improved recovery of residual hydrocarbons entrained in produced water, not usually entirely extracted through conventional methods, will enhance well productivity. H2Omaxx will enable oil and gas operators to reduce, reuse, and recycle water efficiently without the use of flocculants and will help to reduce production costs.