Source Energy Services Ltd. together with its affiliates, completed its recapitalization transaction pursuant to a plan of arrangement dated Nov. 25, 2020, under the Canada Business Corporations Act.
The Plan of Arrangement was approved by the Court of Queen’s Bench of Alberta on Nov. 27, 2020.
“We are very pleased to have successfully completed the Recapitalization Transaction with strong support from our key stakeholders,” said Brad Thomson, chief executive officer of Source. ‘We have significantly improved our capital structure and addressed our liquidity challenges arising from the historic downturn in the Western Canadian oil and gas industry. Completion of the Recapitalization Transaction will provide enhanced financial strength and flexibility and better position Source to pursue our business and strategic objectives. We thank all of our customers, suppliers, employees, shareholders and other stakeholders for their continued commitment to Source.”
In connection with the completion of the Recapitalization Transaction, two new directors have been appointed to Source’s board of directors: Chris Johnson is the co-founder, CEO and president of Crown Capital Partners Inc., a public alternative finance provider. Johnson brings a wealth of finance, M&A and corporate governance experience to the board, gained through his experience as financier and/or director of numerous public and private companies. He is a Certified Financial Analyst.
Steven Sharpe is the managing director of The EmBeSa Corp., a consultancy dealing with corporate restructuring. He is a seasoned business executive and corporate director with experience in a number of sectors including energy, technology, investment banking and hospitality. Sharpe currently sits on the Advisory Board of the Pine River Institute, and is a director of Dundee Corp., Essential Energy Services Ltd. and Crown Capital Partners Inc.
With the appointment of the two new directors, Jim McMahon and Mick MacBean have resigned from the board. Thomson stated, “We’ve been fortunate to have Jim and Mick on the Source board and will miss the unique perspectives and experience that they provide as board members. As a co-founder of Source, Jim has been on the board for many years and Mick joined the Source board in early 2019. These gentlemen have provided unwavering support to Source through incredibly volatile times faced by the oilfield services sector. It has been an honor and a privilege to work with them.”