CALGARY, Alberta, June 06, 2017 (GLOBE NEWSWIRE) — West Mountain Environmental Corp. (the “Company”) (TSXV:WMT) previously announced on April 11th, 2017 that Jereh Energy Services Corporation (“Jereh”) had provided the Company with a notice that the Company is default of its obligations to pay the amounts owing under the 6.5% Convertible Bond held by Jereh. A demand payment in the amount of CDN$4,272,370 together with interest and costs accruing after April 3, 2017 (the “Indebtedness”) was also issued by Jereh. In addition, Jereh provided the Company with a Notice of Intention to Enforce Security under section 244(1) of the Bankruptcy and Insolvency Act (Canada) giving notice of Jereh’s intention to enforce its security in respect of the Indebtedness within 10 days following April 12, 2017.
Subsequent to the 10 days following April 12, 2017, Jereh filed an application with the Court of Queen’s Bench Alberta (the “Court”) for an order providing for the appointment of a receiver/manager over the assets of the Company and Phase Separation Solutions Inc., its wholly-owned subsidiary. This application was originally set to be heard on May 23, 2017 and was subsequently adjourned to June 2, 2017. At the hearing held on June 2, 2017, the Company sought an adjournment of the application for a period of 30 days to provide time for the completion of the proposed financing with Walker McNeil Group of Companies (“WMGOC”) first announced on April 11, 2017. On June 5, 2017, Justice Dario of the Alberta Court of Queen’s Bench granted the adjournment application, subject to the following conditions: 1) the application is adjourned to be heard on July 4th, 2017, in order to allow the WMGOC financing to be completed; 2) during the adjournment period, there be no transfer of assets except in the ordinary course of business (subject to de minimus rule); 3) during the adjournment period, corporate expenditures be limited to the minimum necessary for operations in the ordinary course; 4) during the adjournment period, corporate resources should not be expended to pursue the WMGOC financing except for WMT’s reasonable and taxable legal fees to a cap of $50,000; 5) counsel to establish a timetable for the delivery of additional materials, if any; 6) Jereh has the right to return to Court at any time if they find evidence of depleting corporate assets in violation of the order; and 7) costs of the application are reserved to the return date for the application.
The Company is currently working with WMGOC to complete the proposed financing as quickly as possible. There is no certainty that the proposed financing will be completed.
About West Mountain
West Mountain is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. Through its subsidiaries it employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil and industrial sludge converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. The Company’s management team maintains expertise in hazardous waste management and contaminated site remediation with experience spanning North America and 15 countries internationally.
Certain statements contained herein constitute forward-looking statements within the meaning of applicable securities laws. In particular, this new release provides forward-looking statements in relation to the proposed financing and its completion. The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. There is no certainty that the proposed financing will be completed on the disclosed terms or at all. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The forward-looking statements and information contained in this news release are made as of the date hereof and West Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.
CONTACT: For Inquires Contact: Mr. Tim Mahoney, CEO and President Tel: 709 726 5198 Email: [email protected] Web: http://www.wmtenv.com