Select Sands Corp. issued an update regarding the company’s operations and future direction.
“On July 16, 2024, our primary lender issued a demand letter serving as final notice of default to bring our account current by Aug. 1, 2024, to avoid foreclosure and the invocation of power of sale on collateralized assets and associated costs,” the company stated. “As of July 16, 2024, the past due amount is $249,863, the total outstanding indebtedness owing to the lender is $11,648,055 and interest is accruing at $2,092 per day.
“In response to the evolving market dynamics and recent challenges, Select Sands, in late April of this year, made a strategic decision to temporarily pause operations. This decision was influenced by lower-than-anticipated oil and gas activity in key basins, a cautious 2024 sales forecast, current product pricing trends, and a measured transition to the industrial sand markets. Additionally, the company has been navigating high interest rates and the resultant impact on our debt.
“Despite these hurdles, Select Sands has proactively engaged in discussions with potential buyers for merger and acquisition opportunities over the past months. Our primary operational goal remains to diversify and strengthen our presence in the industrial market to complement our oil and gas sector sales. However, the market conditions for high-grade silica sand would necessitate significant upgrades to achieve desired profitability levels.
“In line with our strategic pause, most employees were furloughed, and we have seen minimal sales from our existing inventory stored at the Diaz rail yard and the George West Transload facility.
“As previously announced on May 13, 2024, the company remains subject to a cease trade order against the company effective May 8, 2024, issued by the British Columbia Securities Commission, for failing to file audited annual financial statements, management’s discussion and analysis and annual certifications for the year ended Dec. 31, 2023, within the time period prescribed by securities laws.”