SHERWOOD PARK, AB, Sept. 30, 2022 /CNW/ - (TSXV: VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") is pleased to announce that it has acquired Young EnergyServe Inc. (Young), a privately held company providing turnkey turnaround solutions, cutting-edge robotic tank cleaning services, and various other industrial services throughout Canada. Young currently has approximately 150 office and field staff with manpower reaching 500 employees during peak workloads.
Established in 1999, Young has been a leader in the industry by constantly investing, researching, and developing new technology. Young's zero-entry tank cleaning technology and robotics are industry leading, providing clients with enhanced safety and operational efficiencies. The acquisition allows Vertex to expand its customer base and industrial maintenance service offerings.
"With the acquisition of Young, we are adding innovative technological advancements to bolster our existing service lines. The addition of their strong leadership, operational integrity, safety, and training values are in line with Vertex's core values." said Terry Stephenson, CEO and President of Vertex. "I am delighted to welcome our 150 new team members, who will complement our existing team and enhance our capabilities and workforce."
The acquisition was completed for a purchase price of $13.8 million, including 5.45 million common shares being issued at $0.55 per common share, a cash payment on closing of $6,800,000 and the issuance of a $4,000,000 promissory note, subject to adjustments made in accordance with the purchase and sale agreement. The promissory note has an interest rate of 4% and will be repaid by Vertex, in 36 equal monthly installments, anticipated to be, subject to adjustments, $118,095.94 per month, commencing October 15, 2022.Vertex will use its existing credit facilities to fund the acquisition.
Since 1962, Vertex has been a leading North American provider of environmental services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 1,150 employees and lease operators that provide services to help clients achieve their developmental and operational goals. From initial site selection, consultation, and regulatory approval, through construction, operation, and maintenance, to conclusion and environmental cleanup, Vertex provides a wide array of services to customers operating in industries such as energy, mining, utilities, private development, public infrastructure, construction, telecommunications, forestry, agriculture, and government.
Vertex principally operates in Canada with select locations in the United States.
This news release contains forward-looking statements regarding the initiatives and projects described above. Forward-looking statements also include any other statements that do not refer to historical facts. By their nature, forward-looking statements are based on assumptions and subject to inherent risks and uncertainties. There is a risk that the initiatives and projects described above may be delayed, canceled, suspended, or terminated. This could cause future results to differ materially from the forward-looking statements made in this news release. Except as required by law, Vertex undertakes no obligation to publicly update or revise any forward-looking statements. Forward-looking statements are provided herein for the purpose of giving information about the initiatives and projects referred to above and their expected impact. Readers are cautioned that such information may not be appropriate for other purposes.
Neither the TSX Venture Exchange (TSX-V) nor its Regulation Service Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Vertex Resource Group Ltd.
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