Calgary, Alberta (FSCwire) - Qwest Diversified Capital Corporation (“QDCC” or “the Company”) announces that it has disposed of the Pigeon Lake Assets (the “Assets”) previously acquired effective July 1, 2014, in a sale back to the original vendor for $200,000. QDCC has retained a one-time option to repurchase the Assets any time on or before the 31st day of December, 2015 at a purchase price of $200,000. The Assets have a negative monthly cash flow under the current commodity price environment and management expects net cash flows of QDCC to increase as a result of the disposal.

Management and the Board of Directors of QDCC have regularly discussed the Company’s dividend policy. Given the current commodity price environment, it is the view of management that internally generated cash flows are better utilized as described in the Company’s MD&A for the three months ended January 31, 2015. If and when oil prices stabilize and begin an upward trend, or when the Company adds additional production of substantial size, there may be opportunities to revisit dividend policy. At the present time, QDCC remains a growth-focused corporation. Management believes that the low commodity price environment that is currently being faced may lead to opportunities to add new assets cost-effectively, and these acquisitions may be supported by internally generated cash.

QDCC has initiated a program allowing existing shareholders of record as of May 28, 2015 (the “Record Date”) to purchase additional Series 1 Special Shares at a ratio of one new share for every ten shares held (1:10) as of the Record Date, at a price of five dollars ($5) per share (the “Additional Offering”). These new shares will be offered via Offering Memorandum to appropriately qualified investors and will have the same rights as previously issued Series 1 Special Shares.  Existing shareholders as of the Record Date may subscribe for such shares in the prescribed ratio until July 30, 2015. A closing will be conducted on or about July 31, 2015. The Company will send each shareholder as of the Record Date a notice of the Additional Offering and information on how to contact the Company for instructions on how to subscribe.  If fully subscribed, the Company may issue up to 56,317 additional Series 1 Special Shares for aggregate gross proceeds of up to $281,585.  The Series 1 Special Shares offered pursuant to the Additional Offering may be sold through Exempt Market Dealers, who may receive a commission of up to 10% of the gross proceeds of the Series 1 Special Shares sold under the Additional Offering.  Chinook Financial Ltd., a company controlled by David Mears, Chief Executive Officer of QDCC, has confirmed its intention to subscribe for its full allotment.  Readers are cautioned to read the Offering Memorandum and subscription agreement to be prepared in connection with the Additional Offering in their entirety for the full details of the Additional Offering, including risk factors applicable to the Company and its business. 

FOR FURTHER INFORMATION PLEASE CONTACT:

investorrelations@qdcc.ca
Phone: (403) 262-8444

Glenn Hamilton

Chief Financial Officer

Qwest Diversified Capital Corporation

Quinn Kuiken

Manager of Business Development

Qwest Diversified Capital Corporation

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws.  Such information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “schedule”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “intend”, “could”, “might”, “should”, “believe”, “develop”, “test”, “anticipation” and similar expressions.  In particular, information regarding the Company’s option to re-purchase the Pigeon Lake asset and the terms and projected proceeds of the Additional Offering contained in this news release are forward-looking information because such information are based on certain estimates and assumptions regarding future events. 

These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect.  Readers are cautioned that actual future operations, operating results and economic performance of the Company are subject to a number of risks and uncertainties, including the ability to complete the Additional Offering on the terms described or at all, and general economic, market and business conditions.  Results could differ materially from what is currently expected as set out above.  For more information on risks and uncertainties applicable to the Company you should refer to the Company’s most recently filed managements' discussion and analysis which is available at www.sedar.com. 

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date.  While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as may be required by securities laws.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, any securities to any person in any jurisdiction.  Any such offer or solicitation may only be made by means of delivery of the relevant offering documents, which documents will contain material information not included herein and shall supersede, amend and supplement the terms of the Additional Offering described in this news release in its entirety. This news release should not be construed as investment advice or a recommendation to purchase or sell any securities of the Company.

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