Aveda Transportation and Energy Services Inc. Announces Conversion of Convertible Debentures

Aveda Transportation and Energy Services Inc. Announces Conversion of Convertible Debentures
  
 

CALGARY, ALBERTA--(Marketwired - Jan 2, 2014) - Aveda Transportation and Energy Services Inc. ("Aveda" or the "Company") (TSX-VENTURE:AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, is pleased to announce that pursuant to the terms and conditions of a convertible debenture (the "Convertible Debenture") issued in favour of Werklund Capital Corporation ("WCC") dated December 13, 2011, as amended on October 1, 2013, Aveda has exercised its right to convert the $4.72 million outstanding principal amount of Convertible Debenture into common shares in the capital of the Company (the "Common Shares"). For additional information concerning the Convertible Debenture, please see the Company's news release dated October 9, 2013 available under the Company's profile on SEDAR at www.sedar.com.

In connection with the conversion of the Convertible Debenture (the "Conversion"), the Company has issued an aggregate of 1,850,980 Common Shares to WCC from treasury at a deemed price of $2.55 per Common Share and has paid a lump sum payment of $134,616.99 which is equal to 75% of the interest that would have become payable from the conversion date until maturity. Based on public filings, after giving effect to the Conversion, WCC will own approximately 6,567,335 Common Shares.

About Aveda Transportation and Energy Services Inc.

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 of America principally in and around the states of Texas and Pennsylvania. Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda's rental operations include the rental of tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.

Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Calgary, AB, Slave Lake, AB, Leduc, AB, Sylvan Lake, AB, Edson, AB, Mineral Wells, TX, Pleasanton, TX, Midland, TX, Williamsport, PA and Buckhannon, WV. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. For more information on Aveda please visit www.avedaenergy.com.

Neither 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.

Aveda Transportation and Energy Services Inc.Bharat Mahajan, CAVice President, Finance and Chief Financial Officer(403) [e-mail]