Cathedral Energy Services Ltd. (TSX:CET) acquired Operating Assets of Compass Directional Services Ltd. for CAD 9.3 million on June 22, 2022. The Transaction was funded by CAD 4.0 million in cash; and the issuance of 7,643,139 common shares of Cathedral to Compass with a deemed price of CAD 0.72 per common share. Approximately 82% of the issued shares will be subject to contractual restrictions with portions vesting at various periods over two years. Approximately 18% of the issued shares are subject to contractual restrictions over a longer period lasting four years. As part of the Transaction, Cathedral has retained key Compass personnel under employment contracts to ensure a seamless customer service experience, successful integration and long-term alignment with Cathedral's strategy. Cathedral expects the cash flow generated from the Transaction to pay back the Company's initial investment in approximately 2.5 years.

Cathedral Energy Services Ltd. (TSX:CET) completed the acquisition of Operating Assets of Compass Directional Services Ltd. on June 22, 2022.