CALGARY, ALBERTA — (Marketwired) — 03/02/15 — CriticalControl Solutions Corp. (“CriticalControl” or the “Corporation”) (TSX: CCZ) announced that it is reviewing alternatives with respect to the portion of its business not related to its energy services business segments. In 2013 the non-energy services portion of the Corporation–s business comprised of 33% of the Corporation–s revenue.
“In 2005 we chose to enter into the energy services business with software and solutions to manage oil and gas production data from the well to the financial statement, which has now become our core focus,” said Alykhan Mamdani, President and CEO of CriticalControl. “The objective with this strategic review is to increase our competitiveness, focus our management team and take advantage of acquisition opportunities in our core business as they arise.
During Q4 of 2014 management commenced the execution of a plan to streamline the operations of its non-energy services business. This plan was executed in late Q4 2014 and during Q1 2015. The Corporation is expecting to incur or accrue severance costs and onerous lease provisions of approximately $650,000 in Q4 of 2014 attributed to the Corporation–s non-energy services business.
During the course of its review, the Corporation will evaluate divesting a portion or all of its non-energy services business in one or more transactions. Management expects the strategic review to be completed by the end of May 2015.
Forward-Looking Statements
Although the Corporation is evaluating strategic alternatives for its non-energy services business, there is no assurance that the process will result in a divestiture of any portion of this business. Notwithstanding expectations of the review being completed by the end of May 2015, once further information is obtained, the Corporation may choose to terminate the process early or extend the process where appropriate.
About CriticalControl
In a world of escalating globalization, with an increasingly transient workforce, enterprises have difficulty maintaining their knowledge and are forced to focus on their key market advantages to remain competitive. CriticalControl provides these enterprises with secure and cost-effective solutions for the completion of document and information intensive business processes through an integrated offering of software, outsourced services and optimized business processes.
Contacts:
CriticalControl Solutions Corp.
Alykhan Mamdani
President & CEO
(403) 705-7500
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