WEST MOUNTAIN OBTAINS US$7 MILLION STRATEGIC INVESTMENT WEST MOUNTAIN OBTAINS US$7 MILLION STRATEGIC INVESTMENT FROM JEREH ENERGY SERVICES
West Mountain Capital Corp. has closed its transaction with Jereh Energy Services Corp. of Yantai, China, with Jereh having made a $7-million (U.S.) investment in the company. The investment was comprised of the sale to Jereh of (i) 15,474,074 common shares of the Company at the price of C$0.27 per share for proceeds of C$4,178,000 and (ii) a 6.5% secured convertible bond (the "Bond") of the Company in the aggregate principal amount of US$3,000,000 issued at par. The Bond and accrued interest is due and payable on the second anniversary of the closing date. The principal amount of the Bond is convertible at the option of Jereh prior to maturity at the conversion prices of C$0.32 and C$0.50 per share during the first year and second year of its term respectively.
"This is a significant milestone for West Mountain Capital, not only did we secure a substantial investment for the Company but we also secured a very strong industry partner in Jereh who will open up additional markets for us in China and beyond," said Paul Antle, President and CEO. "Jereh also provides us with superior manufacturing capability in China for our proprietary Thermal Phase Separation technology. We cannot overstate the importance of our partnership with Jereh."
The Company will now focus on opportunities for the treatment of hazardous industrial waste in the Chinese oil and gas industry with Jereh through a Chinese joint venture company that is to be incorporated in the coming days. WMT will also concentrate on expanding its existing base of customers throughout China and beyond for hazardous industrial sludge treatment and contaminated soil remediation. Refer to the Company's news release dated November 20, 2013 for additional information regarding the joint venture company.
As a term of its investment in West Mountain, Jereh is entitled to nominate two persons for election as directors of the Company. Mr. Wang Kunxiao, President and CEO of Jereh, and Ms. Cloris Chen, Vice President of Jereh, were appointed as directors of the Company at the closing of the transaction. "We are excited and pleased to hold ownership in West Mountain giving us access to world class clean technology that has many applications in China," said Mr. Wang Kunxiao, "West Mountain's thermal technology experience and expertise is among the best in the world."
Mr. Steven Thompson and Mr. John Wiebe, long-serving directors of the Company, resigned to allow for the appointments of Mr. Kunxiao and Ms. Chen. The Company is very grateful for the support and good counsel of Mr. Thompson, a founding director of WMT, and Mr. Wiebe who joined the Board in 2007. Both gentlemen were instrumental in helping the Company achieve its objectives over the past number of years.
As is customary for transactions of this nature, the completion of the Transaction is subject to the completion of normal course post-closing filings with the TSX Venture Exchange.