NEW WESTMINSTER, British Columbia – Cabo Drilling Corp. has entered into an agreement to acquire 100% of WorldWide EnviroChem Corp. (WWEC) for total consideration of $870,000. Cabo will assume an existing debt owing in the amount of $125,000 and deliver 14,900,000 Cabo shares to NorthStar Capital at a deemed value of $0.05 per share, subject to TSX Venture Exchange approval.
“This is the first in a series of anticipated strategic acquisitions in the infrastructure services industry that Cabo intends to initiate. We are committed to expanding the mining services that we presently offer to the road building and concrete construction sectors,” stated John Versfelt, Cabo’s president & CEO. “As WWEC’s current activities are centralized in Panama, our transition into the immediate infrastructure opportunities in Central and South America will blend nicely with Cabo’s existing operations in Panama and Colombia.”
As a result of this transaction, Cabo will hold the exclusive rights to distribute the proprietary RoadMaster and BondMaster product lines used in road building and waterproofing of underground and water exposed concrete, to road contractors, precast concrete manufacturers, concrete contractors and ready-mix suppliers throughout North, Central and South America, excluding Chile, but including the Caribbean, plus Southern Africa, including South Africa, Namibia, Botswana, Zambia and Malawi.
Based on the repositioning of the Cabo’s resources and additional services, the company announced that it is changing its name from Cabo Drilling to Cabo Infrastructure Corp., subject to shareholder and regulatory approval.
Cabo has also reorganized its drilling operations in Canada, thereby substantially reducing operating and maintenance costs, as well as general and administration costs. Cabo Drilling (Ontario) is now the central drilling operation for the company, with branches in Surrey, BC, and Springdale, NL. In addition, earlier in the year, the company closed its Forages Cabo division that was located in Montreal, QC.
Visit Cabo.ca to learn more about the company’s divisions and contacts.