NEWS yesterday’s
Divergent to convert $1.15-million (U.S.) of liabilities
2020-12-08 10:22 ET - News Release
Mr. Ken Berg reports
DIVERGENT ENERGY SERVICES ANNOUNCES A FINANCIAL UPDATE
Divergent Energy Services Corp. and two key suppliers have entered into agreements to convert existing current liabilities of $1.15-million (U.S.) into long-term unsecured notes. The notes, one with a four-year term and one with a five-year term, have an interest rate of 5 per cent per annum and principal payments commencing in Q3 2022. The agreements further Divergent's efforts to improve its balance sheet, which is fundamental to its ability to access growth capital and support the anticipated growth in operations during the terms of the notes. To date, the company has successfully negotiated the conversion of a cumulative $3.15-million (U.S.) of current liabilities into manageable long-term debts, the repayment of which coincides with the company's expected future cash flows.
Details of the company's restructuring initiatives are available in the business transformation presentation on the company's website.
About Divergent Energy Services Corp.
Headquartered in Calgary, Alta., Divergent provides artificial lift products and services that are used in the oil and gas industry. Product lines include electric submersible pumps, electric submersible progressing cavity pumps and the future development of an electromagnetic pump technology.