Cordy Enters into Line of Credit Agreement

CALGARY, Alberta, Sept. 17, 2018 (GLOBE NEWSWIRE) -- Cordy Oilfield Services Inc. (“Cordy” or the “Company”) (TSX VENTURE: CKK) has entered into a line of credit agreement, (the “Agreement”), with a private lender (the “Creditor”), pursuant to which it may borrow up to an amount equal to 50% of eligible receivables, on a revolving basis (the “Credit Facility”). Based on the current level of eligible receivables Cordy’s availability under the Credit Facility is approximately $1.5 million. The Agreement includes a General Security Agreement that grants the Creditor a continuing security interest in all present and after acquired property of Cordy and its subsidiaries. The Credit Facility bears interest at the rate equal to the Bank of Canada prime rate plus 4% per annum and has an initial term of two years subject to earlier demand being made by the lender.

The funds available under the Credit Facility will be used by Cordy to support working capital for its growing operations.

Additional information on Cordy is available on its website at www.cordy.ca or on SEDAR at www.sedar.com.

READER ADVISORY

This news release contains certain forward-looking information and statements within the meaning of applicable Canadian securities legislation.  Certain statements contained in this news release may contain such words as “anticipate”, “could”, “continue”, “should”, “seek”, “may”, “intend”, “likely”, “plan”, “estimate”, “believe”, “expect”, “will”, “objective”, “ongoing”, “project” and similar expressions are intended to identify forward-looking information or statements.  In particular, this news release contains forward-looking statements including the Company’s expectations regarding availability of borrowings under the line of credit and the use of such borrowed funds.  Although the Company believes that the expectations and assumptions on which such forward-looking information and statements are based are reasonable, undue reliance should not be placed on the forward-looking information and statements because the Company can give no assurances that they will prove to be correct.  Since forward-looking information and statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, the risks associated with the oilfield services sector (i.e. demand, pricing and terms for oilfield services; current and expected oil and gas prices; exploration and development programs, weather, health, safety and environmental risks), competition, and uncertainties resulting from potential delays or changes in plans with respect to development projects or capital expenditures and changes in legislation, including but not limited to tax laws, royalties and environmental regulations, stock market volatility and inability to access sufficient capital from external and internal sources.  Accordingly, readers should not place undue reliance on the forward-looking statements.  Readers are cautioned that the foregoing list of factors is not exhaustive.  Additional information on these and other factors that could affect the Company’s financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through SEDAR at www.sedar.com.  The forward-looking information and statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.