Hyduke Provides Bi-Weekly Default Status Report

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

NISKU, AB, April 15, 2019 /CNW/ - Hyduke Energy Services Inc. ("Hyduke" or the "Company") announces that, further to the Company's press releases of March 18, 2019 and April 4, 2019, the Company is providing this bi-weekly default status report in accordance with National Policy 12‑203 Management Cease Trade Orders ("NP 12-203").

On March 18, 2019, the Company announced that it would delay the filing of its annual audited financial statements for the year ended December 31, 2018, its related management's discussion and analysis, its annual information form for the year ended December 31, 2018, and the Chief Executive Officer and Chief Financial Officer certifications (collectively, the "Required Filings") past the prescribed deadline of March 31, 2019.

The Company was granted a management cease trade order ("MCTO") by the Alberta Securities Commission, its principal regulator, on April 2, 2019.  Hyduke has until May 31, 2019 to file the Required Filings.  Pursuant to NP 12-203, Hyduke must file bi-weekly default status reports in the form of a news release during the period of the MCTO. Failure to file the Required Filings by May 31, 2019 or the bi-weekly default status reports will result in the issuance of a general cease trade order.

The Company intends to file the Required Filings upon payment of its outstanding audit fees from the Company's 2017 financial audit. The Company expects to be in a position to pay these fees following the disposition of certain assets, which are expected to be completed in mid-April 2019.

Pursuant to the provisions of the alternative information guidelines specified in NP 12-203, the Corporation reports that since its April 4, 2019 bi-weekly default status report (the "Default Status Report"):

• Other than as disclosed below, there have been no material changes to the information contained in the Default Status Report that would reasonably be expected to be material to an investor:
  
  On April 5, 2019, the Company announced that pursuant to Part VII, Section 720 of the Toronto Stock Exchange (the "TSX") Company Manual (the "Manual"), it had submitted an application to the TSX for voluntary delisting (the "Voluntary Delisting Application") of the Company's common shares ("Common Shares") from the TSX in conjunction with having submitted an application to list Hyduke's Common Shares (the "Listing Application") on the TSX Venture Exchange (the "TSX-V"). The Voluntary Delisting Application is subject to TSX approval and the Listing Application is subject to TSX-V approval.
  
  
• There have been no failures by the Company to fulfill its stated intentions with respect to satisfying the provisions of the alternative information reporting guidelines under NP 12-203;
  
  
• There has not been, nor is there anticipated to be, any specified default subsequent to the default which is the subject of the Default Announcement; and
  
  
• There is no other material information respecting the Corporation's affairs that has not been generally disclosed.

The Company intends to comply with the provisions of the alternative information guidelines as set out in NP 12-203 for as long as it remains in default, by issuing bi-weekly default status reports, each of which will be issued in the form of a news release. The Company will also continue to disclose any other material information concerning its affairs and ongoing business activities.

About Hyduke

Trading on the TSX under the symbol "HYD", Hyduke Energy Services Inc. is a supplier of equipment and services to the oil and gas drilling and well servicing industry.

Forward looking information

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws.  The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.  More particularly and without limitation, this news release contains forward-looking statements and information relating to the expected filing of the Required Filings, the disposition of certain of the Company's assets, the Company's compliance with alternative information guidelines, the ability of the Company to pay its auditors, and relating to the expected voluntary delisting of Hyduke's Common Shares from the TSX and the listing of its Common Shares on the TSX-V.  These forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Assumptions have been made with respect to the expected proceeds from the sale of the Company's head office building and land, the ability of the Company to complete the filing of Required Filings and with respect to anticipated approvals from the TSX and TSX-V on the Voluntary Delisting Application and Listing Application.  Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as the Company cannot give any assurance that they will prove to be correct.  Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, the failure to close the disposition of the Company's head office building and land, insufficient funds to pay the Company's auditors and the failure of the Company to meet the TSX-V listing requirements. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive.  Other risk factors that could affect the Company's operations or financial results are included in the Company's annual information form and may be accessed through the SEDAR website (www.sedar.com).  The forward-looking statements and information contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.

The TSX has neither reviewed nor approved this release.

SOURCE Hyduke Energy Services Inc.

Pat Ross, President and Chief Executive Officer, Tel [phone] or Nick Cristiano, Chief Financial Officer, Tel [phone]

Related Links

http://www.hyduke.com