Bay Street News

DIVERGENT Energy Services Corp. Announces Closing of Private Placement

CALGARY, ALBERTA–(Marketwired – June 20, 2017) –

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

DIVERGENT Energy Services Corp. (Divergentor the Corporation) (TSX VENTURE:DVG) announces that further to its press releases dated June 8, 2017, it has completed the closing of a non-brokered private placement for 5,000,000 common shares of the Corporation at a price of $0.15 per common share for gross proceeds of $750,000.

Insiders of the Corporation have participated in $33,750 (or 5%) of the private placement.

Divergent paid a finder’s fee and finder’s warrants of 6% of the gross proceeds to qualified non-related parties that participated. The fees amounted to $41,600 and the Corporation issued 276,000 finder’s warrants that entitle the holder thereof to acquire one Common Share for $0.15 until the expiry date of December 31, 2018.

The net proceeds will be used to advance the commercialization of the Corporation’s Linear Pump by providing the needed capital to acquire complete Linear Pump systems, which include the linear motors, reciprocating pumps, power cable, tubing anchors, and surface controls. All items require time to fabricate and Divergent can be better positioned to take advantage of increasing client interest by having all the necessary equipment on hand. A portion of the net proceeds will be directed to general working capital needs to continue the growth of the US business.

Completion of the Private Placement is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange Inc. The common shares issued will be subject to a four month hold period from the date of closing of the Offering. Following closing of the Private Placement, the Corporation will have 104,953,227 Common Shares issued and outstanding.

ABOUT DIVERGENT ENERGY SERVICES CORP.

Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of Artificial Lift products and services that are used in the oil and gas industry. Products include Electromagnetic Pumps, Electric Submersible Pumps, and Electric Submersible Progressing Cavity Pumps.

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.

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the use of proceeds and the closing of the private placement including the Corporation’s ability to obtain necessary approvals from the TSX Venture Exchange. 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 Corporation’s disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Ken Berg
President & Chief Executive Officer

Scott Hamilton
Chief Financial Officer

DIVERGENT Energy Services Corp.
1500, 715 – 5th Ave SW, Calgary, AB T2P 2X6
(403) 543-0060
(403) 543-0069
www.divergentenergyservices.com