CALGARY, ALBERTA--(Marketwired - April 24, 2017) - Canadian Equipment Rentals Corp. ("CERC" or the "Company") (TSX VENTURE:CFL) is pleased to announce that it has largely completed its restructuring efforts and entered into a Loan and Security Agreement with Maynbridge Capital Inc. ("Maynbridge").

The corporate restructuring and refinancing is the culmination of over ten months of efforts to eliminate significant costs and inefficiencies in the business and transform the Company from one with multiple business lines, in different industries, operating under a high corporate overhead cost structure, to a lean and focused company operating one business line under a low-cost corporate structure. The Company is now solely focused on the rental of quality assets to top-tier customers in the Western Canadian Sedimentary Basin. The Company continues to experience strong demand for its rental assets and is now well positioned to take advantage of the anticipated improvements in rental rates in conjunction with the overall strengthening of the oil and gas services market.

Through the restructuring process the Company has significantly reduced its total debt through the divestures of non-core subsidiaries, the sale of under-utilized assets and through the retirement of $2.5 million of debt owing to a company controlled by Mr. Dean Swanberg in exchange for 10 million common shares (representing a price of $0.25 per share). This conversion will result in Mr. Swanberg being the largest individual shareholder of the Company, and the balance of the debt owing to Mr. Swanberg's company being reduced to $2.5 million. The directors of CERC will be appointing Mr. Swanberg to the Company's Board of Directors where his experience and reputation as a veteran oilfield executive in Western Canada will be of great value to the Company.

As a final step in the restructuring process, the Company will be seeking shareholder approval at the June 27, 2017 Annual and Special Meeting to change the name of the Company from Canadian Equipment Rentals Corp. to Zedcor Energy Inc., thus aligning the parent company branding with its only operating entity, Zedcor Energy Services Corp.

The Company is pleased to be able to partner with Maynbridge Capital for the next year through their asset backed lending solution which is well suited for an asset based rental business such as CERC. In conjunction with this financing, the directors of CERC will be appointing Mr. Dean Shillington, CEO of Maynbridge Capital, to the Company's Board of Directors. Mr. Shillington's business and finance expertise will greatly benefit the Company as it executes on its new sharply focused business plan.

The principal amount of the Maynbridge loan is $20.4 million and it has a term of one (1) year (plus a day), with an option to extend for an additional year. The loan bears interest at 12.75% per annum and will be serviced by six months of interest only payments followed by six months of blended interest and principal payments. The proceeds from the loan will be used to repay in full CERC's existing syndicated credit facility. The loan has no financial covenant requirements as it is to be secured through the value of the Company's rental assets and a $2.5 million guarantee from Mr. Dean Swanberg.

Under the Loan and Security Agreement, the Company will, subject to TSX Venture Exchange approvals, issue to Maynbridge 3,651,501 share purchase warrants entitling the holder to acquire that number of common shares in the Company representing approximately 6.5% of the fully diluted equity of the Company, at an exercise price of $0.25 per share. The warrants will expire 90 days after the maturity date of the loan.

The closing of the Maynbridge financing is scheduled for on, or before, April 28th, 2017 and is subject to approval by the TSX Venture Exchange and to the satisfaction or waiver of certain conditions precedent typical for equipment loan transactions.

Ernst & Young Orenda Corporate Finance Inc. acted as the Company's exclusive financial advisor with respect to the refinancing.

About Canadian Equipment Rentals Corp.

Canadian Equipment Rentals Corp. is a Canadian public corporation and parent company to Zedcor Energy Services Corp. ("Zedcor"). Zedcor is engaged in the rental of surface equipment and accommodations to the Western Canadian Oil and Gas Industry. The Company trades on the TSX Venture Exchange under the symbol "CFL".

About Maynbridge Capital Inc.

Maynbridge Capital Inc. ( is a boutique lender that specializes in equipment and property financing to companies across Canada. With offices in Vancouver, Calgary, Toronto, Ottawa and Montreal, Maynbridge is an asset-based lender that assists companies through periods of transition in all economic climates.

Forward-Looking Statements and Information

Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "would have realized', "may have been" or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, the closing of the financing and repayment of CERC's existing credit facility by April 28, 2017, the closing of the $2.5 million reduction of debt held by Mr. Swanberg and the appointment of two new directors. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. Although management believes these assumptions are reasonable, there can be no assurance that they will be proved to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:

Ken Olson
Chief Financial Officer
(403) 930-5434