May 20, 2011 (Filing Services Canada) -- RMS Systems Inc. (RMS - TSX Venture), announces that it has recently completed the installation of the RigManager System on the first drilling rig located in the United States. That rig has now spud the first well using the RigManager System. Dave Hall, President and CEO of RMS, stated "this is a big step in the growth of RMS, I believe it will be a stepping stone to RMS growing significantly in the United States". The United States drilling rig market is approximately three times the size of Canada's and rigs in the United States tend not to suffer from the prolonged downtime associated with "break-up" experienced in Canada.
RMS also announces that a holder of the Convertible Debentures previously issued by the Company in October, 2010 has elected to convert the Convertible Debenture held by it at the stated conversion price of $0.30 per common share. As a result a total of 838,812 RMS common shares have been issued in satisfaction of the principal amount of the Convertible Debenture (in the amount of $250,000) and accrued interest to April 30, 2011 (in the amount of $1,643.84). The principal amount owed by RMS on the Convertible Debentures is currently $1,750,000. Further information on the terms of Convertible Debentures is contained in the Company's news release dated November 1, 2010.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Dave Hall
RMS SYSTEMS INC.
Bay 10, 3419 12th Street NE
Calgary, Alberta T2E 6S6
Tel: (403) 717 9694
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. These risks include, but are not limited to a reduction in drilling activity in the United States and/or Canada. Certain information, including rig count data, is based upon third party information. RMS has not independently verified this data. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RMS Systems Inc. believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. The nature of the agreements that RMS maintains with its industry partners provides that these agreements are, for the most part, terminable without notice and without penalty. In addition, these agreements provide that revenue is earned only while the drilling rig is in operation. As a result, RMS's revenues are impacted significantly by a reduction in drilling activity by its customers and the RMS expectations may be impacted significantly in the event a customer changes its drilling plans or otherwise terminates its relationship with RMS. RMS revenues are also significantly impacted by weather which on occasion limits drilling activities. RMS Systems Inc. disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise, except as required pursuant to applicable securities laws.
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Source: RMS Systems Inc. (RMS - TSX-V)
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