ST. JOHN’S, NEWFOUNDLAND AND LABRADOR–(Marketwired – March 31, 2014) – West Mountain Capital Corp. (TSX VENTURE:WMT) (the “Company” or “West Mountain”) announces that its transaction with Jereh Energy Services Corporation (“Jereh”) of Yantai, China has closed, with Jereh having made a US$7 million 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.
About West Mountain
West Mountain is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. It employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil, industrial sludge, pharmaceutical waste and consumer waste streams converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. The Company’s management team maintains expertise in hazardous waste management, Brownfield remediation and pharmaceutical waste management with experience spanning North America and 15 countries internationally.
Jereh Energy Services Corporation is wholly owned by Yantai Jereh Group, a public company listed on the Shenzhen Stock Exchange (002353:CH) with a market cap of over US$7.0 billion. The company is focused on providing oilfield engineering, technology services and environmental services to the Chinese oil and gas industry. Jereh has subsidiaries in Houston, Calgary, UAE, Kazakhstan and Indonesia.
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, this news release contains forward-looking information regarding the transaction with Jereh. The forward-looking statements and information are based on certain key expectations and assumptions made by West Mountain. Although West Mountain believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because West Mountain can give no assurance that they will prove to be correct.
Since forward-looking statements and information 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. Factors which could materially affect such forward-looking information include the failure to satisfy the closing conditions described in this news release and other factors that are described in the risk factors in the Company’s most recent annual management’s discussion and analysis that is available on SEDAR at www.sedar.com. The forward-looking statements included in this news release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this news release are made as of the date hereof and West Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, 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 the responsibility for the adequacy or accuracy of this release.
West Mountain Capital Corp.
Mr. Paul Antle
President and CEO
709 726 0336