Vertex Resource Group Ltd. has closed a deal to acquire Calgary-based Cordy Oilfield Services Inc.
In April, Vertex acquired all of the issued and outstanding shares of Cordy via a three-cornered amalgamation. The deal saw Cordy shareholders receive approximately 0.08 shares of Vertex and Vertex Energy Services Ltd., a wholly owned subsidiary, for each share of Cordy they held.
In the end, about 18.9 million shares of Vertex – representing 17.2% of the company’s issued and outstanding shares – were issued to Cordy shareholders.
Vertex, headquartered in Sherwood Park, Alta., is an environmental services company serving the energy, mining and industrial, utilities, agriculture and forestry, and government sectors. Cordy provides construction and environmental services to clients throughout Western Canada.
“This acquisition is a strong fit for our company and shareholders,” Vertex president and CEO Terry Stephenson said in a statement. “We expect joining Vertex will provide Cordy the necessary backing and capital to fuel their continued strong performance.”
As a condition of the amalgamation, Vertex completed a private placement in March, issuing $15 million in convertible debentures. The debentures bear interest at 8% per year. At any point during their five-year term, the debentures can be converted into Vertex common shares at price of $0.65 per share.
“We are excited to bring Cordy under our umbrella, providing customers and employees with a next-level experience,” Stephenson said. “Congratulations to the Cordy team on their successes over the years, and we look forward to supporting that continued success.”
MLT Aikins lawyers Sean MacLachlan, Salvatore Amelio, John Brigidear, Mark Mielke and Sheldon McDonald, and paralegal Candice Pearson, were pleased to act for Vertex on its acquisition of Cordy Oilfield Services and its $15-million private placement. Learn more about our Corporate Finance & Securities team.