Pulse Data Inc (TSX:PSD)
Shares Issued 54,543,951
Last Close 6/2/2008 $2.86
Tuesday June 03 2008 - News Release
Mr. Douglas Cutts reports:
PULSE DATA INC. ANNOUNCES CLOSING OF THE SALE OF ITS TERRAPOINT BUSINESS UNIT
Pulse Data Inc. ("Pulse" or the "Company")announced today that it has completed the sale of its Terrapoint business unitto Ambercore Software Inc. ("Purchaser"). The purchase price of thetransaction was $6.5-million cash, with an effective date of March 31, 2008.
The base purchase price of $6.5-million included $3.0-million paid onclosing and the remaining $3.5-million is to be paid within 13 months ofclosing. Payment of the remaining $3.5-million has been guaranteed by SQFiveIntelligent Oilfield Solutions Ltd., a subsidiary of Quorum Oil and GasTechnology Fund Ltd. Incremental future consideration, up to an additional$1.5-million, may also be realized based upon results of consolidatedoperations of the Purchaser during the 12-month period following theclosing date.
The transaction represents a sale of the majority of the net assets ofthe Terrapoint business unit, including certain working capital items totalling$4.5-million. The Purchaser has hired the entire Terrapoint management team,and essentially all Canadian and U.S. Terrapoint employees. Pulse retains theCanadian tax pools having an estimated value to the Company of approximately$3.6-million.
With this sale, Pulse has now divested itself of all non-core businessassets, and has positioned itself as a pure-play seismic data library companyproviding 2-D and 3-D seismic to the oil and natural gas industry in WesternCanada. Pulse will focus solely on growing its seismic data library throughacquisition of seismic data sets and participation surveys.
Corporate profile
Pulse is a market leader in the acquisition, marketing and licensing of 2-D and 3-D seismic data for the Western Canadian energy sector. Pulse owns the second-largest freely tradeable seismic data library in Canada, currently consisting of 257,300 net kilometres of 2-D seismic and 11,700 net square kilometres of 3-D seismic. The library extensively covers the Western Canada sedimentary basin, where most of Canada's oil and natural gas exploration and development occurs. Pulse has publicly traded on the Toronto Stock Exchange since 2001. The Company has paid its shareholders a quarterly dividend since 2003, and, at Pulse's current share price, provides one of the highest dividend yields on the TSX.
