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Calgary, Alberta CANADA, February 06, 2012 /FSC/ - RMS Systems Inc. (RMS - TSX Venture), ("RMS" or the "Company") announces that its wholly owned subsidiary, RigManager Systems Ltd. ("RigManager"), has entered into a $1,000,000 revolving loan facility with its Bank (the "Loan"). The Loan is required to be re-paid on demand and is secured by all of the assets of RigManager. In addition, the loan is guaranteed by RMS and by RigManager Inc. (the United States subsidiary of the Company). Interest on the Loan is at the greater of 5% per annum and 2% per annum above the Bank's prime lending rate. The Loan will be used to fund day to day operations.
RMS is also pleased to announce that RigManager currently has 36 drilling rigs operating with its equipment and RigManager Inc. has 4 rigs operating with its equipment. RigManager Inc. is also expanding its operations by opening a new service centre in Dickinson, North Dakota to allow it to provide products and services in the US portion of the Williston basin. Both subsidiaries are experiencing increased interest in their products and expect to continue to increase their market share in the areas they operate. The autodriller product that the company has been developing is now completed and in commercial use in the field. The company currently has 15 autodrillers operating in the field.
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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