InvestmentPitch: Aveda Transportation and Energy (TSXV:AVE) Grows Market Share with Acquisition of Precision Drilling Corporation's U.S. Rig Moving Assets - Video News Alert Summary on InvestmentPitch.com Vancouver, BC, June 17, 2014 - Aveda Transportation and Energy Services (TSXV:AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, continues to grow its market share, with the announcement that it has signed an asset purchase agreement to acquire Precision Drilling Corporation's U.S. rig moving assets. InvestmentPitch.com has produced a "video news alert" discussing Aveda Transportation and Energy. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Aveda" in the search box. A significant portion of Aveda's 2014 capital expenditure budget is being allocated to this US$24 million acquisition, which is expected to close on July 1st, subject to customary documentation and approvals. The rig moving equipment being acquired includes 13 bed/tandem trucks, 59 winch/conventional tractors, 69 trailers, and 12 cranes. Kevin Roycraft, President and CEO of Aveda stated, "Through this transaction we are acquiring a modern and well maintained fleet that shares the same specifications and equipment configuration as our current U.S. assets. This will support a smooth integration into our operations and drive utilization. It also strengthens our relationship with Precision and we look forward to working with Precision on internal and customer rig moves in the future. Strategically, this will further reduce Aveda's reliance on third-party equipment suppliers, helping to improve margins, and allow us to allocate equipment to both current and new operating areas to take advantage of high activity levels and further growth opportunities in certain regions." The company expects to deploy these assets sometime in the third quarter of 2014. Management intends to increase planned capital expenditures for 2014 with an eye to funding additional growth initiatives and reducing the company's third party costs. Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States, principally in and around the states of Texas, Pennsylvania and North Dakota. Aveda recently reported that revenue for the quarter ended March 31, 2014 grew by $12.0 million to $35.5 million, compared with revenue of $23.5 million for the same period in 2013. US revenue increased by 82.5% and Canadian revenue increased by 6.9% which resulted in overall revenue increase of 51.1%. The company has received commitment letters from its banking syndicate which will increase its lending facility, effective June 30th, from $75 million to between $115 to $125 million, subject to the customary due diligence. Bharat Mahajan, Vice President, Finance and CFO stated "This latest increase provides us with access to capital that will allow us to act on an array of strategic growth initiatives both organic and acquisitive." The shares are currently trading at $4.95, up 110% over the last 12 months. For more information, please visit the company's website www.avedaenergy.com, contact Bharat Mahajan CFO at 403-264-5769 or email firstname.lastname@example.org. Please also review Aveda's MD & A and news releases for a detailed list of risk factors. About InvestmentPitch InvestmentPitch.com, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing short three minute videos based on significant news releases, research reports and other market information. Please visit InvestmentPitch.com and browse the extensive library of investment videos. CONTACT: InvestmentPitch.com Barry Morgan, CFO 604-684-5524 email@example.com ------------------------------------------------------------------------------ This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: InvestmentPitch via Globenewswire HUG#1794375
InvestmentPitch: Aveda Transportation and Energy (TSXV:AVE) Grows Market Share with Acquisition of Precision Drilling
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