New West Energy Services Inc., an oil and gas and environmental services company focused on Western Canada, announced NWE and its primary capital and equipment financing partner, Nations Equipment Finance of Norwalk, Conn., have come to an agreement where Nations would acquire an equity stake in NWE.

Under the terms of the agreement, NWE will issue to Nations 11,753,676 common shares in lieu of the repayment of $1,175,367.62 owing by NWE to Nations.  NWE will also replace certain three-year common share purchase warrants currently held by Nations with five-year warrants on the same terms.

Upon closing, Nations would hold approximately 27 percent of NWE's outstanding common shares and, as such, would be a "Control Person" under the policies of the TSX Venture Exchange (TSXV).  In compliance with TSXV requirements, NWE has already obtained the written consent of its shareholders holding more than 50 percent of the company's outstanding common shares to the creation of a new Control Person. NWE's largest shareholder and Lead Director, William A. Rand, would upon closing beneficially own 31 percent of NWE's outstanding common shares.

Philip A. Carlson, President and Chief Executive Officer of Nations commented: "Since completing our initial $6 million financing of New West in March 2017, we've been increasingly impressed by the company's growth, particularly in the completions and production sectors of the oil and gas industry.  Taking an equity position in the company speaks to our confidence in New West's future prospects and we look forward to working with management and the board to create significant shareholder value."

Under the agreement, Nations will have observer status on the NWE board of directors for so long as it beneficially owns more than 15 percent of the outstanding common shares of NWE.

The closing of the agreement is subject to the approval of the TSX Venture Exchange and all securities issued to Nations will be subject to a hold period of four months and one day.