ACT ENERGY TECHNOLOGIES COMPLETES THE ACQUISITION OF SB DIRECTIONAL SERVICES FOR $47MM USD

Executive Summary

• ACT Energy Technologies Ltd. completed its acquisition of SB Directional Services for an aggregate purchase price of approximately USD $47 million.
• The consideration consisted of 3,624,232 ACT common shares and a cash payment of USD $30 million, funded through existing working capital and an expanded credit facility.
• Concurrently, ACT amended its syndicated credit facilities, increasing the CAD‑based facility to CAD $145 million and the U.S.‑dollar availability to USD $30 million (including a new 3‑year USD $20 million delayed‑draw term facility).

Key Details

• Purchase Price Composition:
• Equity consideration: 3,624,232 ACT common shares issued to SB Directional shareholders.

• Cash consideration: USD $30 million paid at closing.

• Financing Structure:

• Existing working capital used for part of the cash payment.
• Amended credit agreement with ATB Financial (administrative agent) and RBC (co‑lead arrangers).
• CAD facility increased from ~CAD $125 M to CAD $145 M.

• U.S. dollar facilities increased from USD $10 M to USD $30 M, comprising:

  • USD $10 M revolving facility (available immediately).
  • New USD $20 M delayed‑draw term facility (3‑year term, quarterly repayments of USD $1.67 M) intended to refinance a prior USD $20 M exchangeable promissory note maturing July 2026.

• Strategic Rationale / Expected Benefits:

• Expands ACT’s presence in the U.S. directional‑drilling market, particularly in the Anadarko and Permian basins.
• Positions ACT as one of the most active independent directional‑drilling companies in North America by job count.

• Anticipated to increase free cash flow and drive positive net earnings through larger scale and improved operational capacity.

• Post‑Acquisition Operations:

• SB Directional will retain its brand name and management team, which will continue leading the U.S. operations.

• Reference to Prior Announcement:

• For additional transaction terms, see ACT’s press release dated March 9 2026.

Notable Quotes

(No direct quotes were provided in the release.)