EDMONTON, Feb. 1 /PRNewswire-FirstCall/ -- Wavefront Energy and Environmental Services Inc. ("Wavefront"), a leader in technology development and implementation for improved oil recovery and optimized groundwater remediation is pleased to announce the completion of its sale of 9,641,052 units ("Units") of the Company at a price of $0.95 per Unit for gross proceeds of $9,158,999. Each Unit consists of one common share (a "Common Share") and one half of one common share purchase warrant ("Warrant"), with each full Warrant entitling the holder to acquire a Common Share priced at $1.25 for period of twelve months ending January 31, 2009.
The Units were sold, through its agent, M Partners LLC ("M Partners"), by way of a brokered and concurrent non-brokered private placement ("Private Placement"). M Partners, as Agent for the brokered portion of the Private Placement, will receive a 6% cash commission of $534,891, plus the reimbursement of their expenses including legal fees. All Units issued under the Private Placement are subject to a four-month hold period expiring on June 1, 2008.
Net proceeds of the Private Placement are estimated to approximate $8,555,108 and will be used to fabricate of Powerwave(TM) and Primawave(TM) systems, with the remainder to be set aside for unallocated working capital.
Passport Energy Master Fund SPC Ltd. and Passport Global Master Fund SPC Ltd together own or control 13.3% of the issued share capital of the Company and warrants which, if exercised, together with their shares, would be 18.5% of the issued capital of the Company on a partially diluted basis.
Wavefront Chairman Steve Percy stated, "The Board and Management remain very confident in our strategic plan and the industry altering benefits that our technology provides the energy and environmental sectors. We appreciate the trust and support the investment community has placed in the Company to bring this plan to fruition. Wavefront continues to see positive uptake in the use of Powerwave and Primawave and expects greater advancements moving forward as the marketplace comes to understand the technical and financial impacts these products bear on oil recovery and groundwater cleanup and remediation."
About Wavefront Energy and Environmental Services Inc.
Wavefront is a technology-based company with a focused, strategic plan to leverage the value of our intellectual property in order to maximize oil production recovery operations, as well as provide additional solutions for environmental applications.
ON BEHALF OF THE BOARD OF DIRECTORS WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC. "D. Brad Paterson" (signed) D. Brad Paterson, CFO & Director Cautionary Disclaimer - Forward Looking Statements --------------------------------------------------
Certain statements contained herein regarding Wavefront and its operations constitute "forward-looking statements" within the meaning of Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations or future performance, are "forward-looking statements". In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other comparable terminology. We caution that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such factors include fluctuations in the acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for products and services, fluctuations in the market for oil and gas related products and services, the ability of Wavefront to attract and maintain key personnel, technology changes, global political and economic conditions, and other factors that were described in further detail in Wavefront's continuous disclosure filings, available on SEDAR at http://www.sedar.com/. Wavefront expressly disclaims any obligation to up-date any "forward-looking statements", other than as required by law.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF
THIS RELEASE WHICH WAS PREPARED SOLELY AT THE DISCRETION OF MANAGEMENT
