Yahoo Finance DIVERGENT Energy Services Announces Financial Update
CALGARY, Alberta, May 01, 2024 (GLOBE NEWSWIRE) -- DIVERGENT Energy Services Corp. (“Divergent”, the "Company", or “DVG”) announces that it will be delayed in filing its audited annual financial statements for the year ended December 31, 2023, the related management’s discussion and analysis and certificates of its CEO and CFO (collectively, the "Filings") with Canadian securities regulators beyond the deadline of April 29, 2024.
Due to the previously disclosed cash flow issues that the Company is experiencing in 2024, due to the lack of payment for goods and services by its largest customer, Divergent has not yet been able to complete the audit of its 2023 financial statements. As such, the Company will not meet the continuous disclosure requirement of making the Filings by April 29, 2024.
In connection with this delay, the Company expects that the Alberta Securities Commission ("ASC") will be issuing a failure-to-file cease trade order ("FFCTO") against the Company. When issued, the Company expects the FFCTO to affect trading in all securities of the Company by securityholders of the Company, to apply in each jurisdiction in Canada in which the Company is a reporting issuer in Canada and to remain in effect until such time as the Company has made the Filings. If the Company is able to make the Filings within 90 days of the date of the FFCTO, such filings will constitute the Company’s application to have the FFCTO revoked.
Should the Company receive sufficient funds from its largest customer, or engage in an alternative restructuring initiative, it will complete the audit process and complete and release the Filings in the future.
For Further Information:
Ken Berg, President and Chief Executive Officer, kberg@divergentenergyservices.com
Ken Olson, Chief Financial Officer, ken.olson@divergentenergyservices.com
ABOUT DIVERGENT ENERGY SERVICES CORP.
Headquartered in Calgary, Alberta, Divergent provides artificial lift products and services for the water, gas and oil industries through its wholly owned subsidiary Extreme Pump Solutions LLC.
DIVERGENT Energy Services Corp., PO Box 5175, Calgary PO South, AB T2H 3A3, (403) 543-0060, www.divergentenergyservices.com
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including, without limitation, statements pertaining to the estimated timing of the Company making the Filings, and related expectations regarding the issuance of, and the requirements for the revocation of, the FFCTO. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR+ website at www.sedarplus.ca. Forward-looking statements are based on estimates and opinions of management of the Company at the time the information is presented, including expectations provided to Divergent by its customers. The Company may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(Not for dissemination in the United States of America)
