Fast Growing Chemical Company
DIVERSIFIED TO ACQUIRE ADDITIONAL OWNERSHIP OF CFR CHEMICALS INC
Diversified Industries Ltd. (“Diversified”) (DVS/TSX-V) is pleased to announce the closing on
the first of two option agreements between Diversified and No. 321 Cathedral Ventures Ltd
(Cathedral). Prior to this purchase, Diversified owned 40% and Cathedral owned 60% of CFR
Chemicals Inc. (“CFR”). Diversified has exercised its right to purchase an additional 10% of CFR
from Cathedral. This gives Diversified a 50% share in CFR. It’s the Company’s intention to
exercise its second option to acquire the remaining 50% of CFR from Cathedral, which would
result in Diversified holding 100% ownership of CFR. (exercisable on or before February 28,
CFR Revenue Up 70%
Diversified President / CEO Darren Lamothe commented: “With our first quarter recently
completed we are pleased to announce our revenues will be approximately $5 million, up 70%
from the same period last year. A continuing strong second quarter is anticipated as many of
our customers are optimistic of increased oil and gas activity in the New Year. We have
implemented our long term growth strategy and are pleased to see our goals and objectives
CFR is a supplier of specialty chemical products primarily to the oil and gas industry. Additional
services provided by CFR include custom blending, storage of chemical products and third party
logistics. CFR’s growth is generated from management’s ability to capitalize on opportunities in
the chemical market and to provide competitive advantages to its clients. An integral part of this
strategy is an ongoing program in R & D of new and unique chemical products.
- CFR is solidly financed and with substantial financial reserves to allow it to grow its revenues over the foreseeable future.
- CFR owns 22 acres in central Alberta on which its main bulk storage and manufacturing facility is located.
- CFR owns in excess of 6.5 million liters of bulk chemical storage at its various locations within Alberta.
- CFR owns approximately 3,000 feet of rail siding on a CN track which is capable of handling up to 35 tank cars. The siding is serviced by CN Rail three times per week.
- CFR has a custom blending facility used to manufacture its own specialty chemicals as well as contract blending for customers.
- CFR generates revenue from custom blending, bulk chemical storage and rail transloading to third party clients and chemical distribution to the oil and gas industries as well as to other industrial markets.
- CFR has over 30 different chemical products that are currently sold in Canada, the United States and abroad.
- CFR has a very experienced core management team operating from Head Office located in Central Alberta.
Diversified currently owns 50% with the option to own 100% of CFR Chemicals Inc. For more
information visit www.cfrchemicals.com
As compensation for the consulting services provided by Big Picture Geoscience Inc.,
Diversified will pay a monthly fee of $3,500 and has granted corporate
consultant options to purchase a total of 200,000 common shares at 40
cents per share, which will be granted in accordance with Diversified's
stock option plan. The initial contract term will be for six months
starting Dec. 1, 2007.