July 22, 2024 – Houston, Texas, USA – Select Sands Corp. (“Select Sands”, “We”, “Our” or the “Company”) (TSXV: SNS | OTC: SLSDF) is issuing an update regarding the Company’s operations and future direction.
On July 16, 2024, our primary lender issued a demand letter serving as final notice of default to bring our account current by August 1, 2024 to avoid foreclosure and the invocation of power of sale on collateralized assets and associated costs. As of July 16, 2024, the past due amount is US$249,863, the total outstanding indebtedness owing to the lender is US$11,648,055 and interest is accruing at US$2,092 per day.
In response to the evolving market dynamics and recent challenges, Select Sands, in late April of this year, made a strategic decision to temporarily pause operations. This decision was influenced by lower-than-anticipated oil and gas activity in key basins, a cautious 2024 sales forecast, current product pricing trends, and a measured transition to the industrial sand markets. Additionally, the Company has been navigating high interest rates and the resultant impact on our debt.
Despite these hurdles, Select Sands has proactively engaged in discussions with potential buyers for merger and acquisition opportunities over the past months. Our primary operational goal remains to diversify and strengthen our presence in the industrial market to complement our oil and gas sector sales. However, the market conditions for high-grade silica sand would necessitate significant upgrades to achieve desired profitability levels.
In line with our strategic pause, most employees were furloughed, and we have seen minimal sales from our existing inventory stored at the Diaz rail yard and the George West Transload facility.
As previously announced on May 13, 2024, the Company remains subject to a cease trade order against the Company effective May 8, 2024 issued by the British Columbia Securities Commission, for failing to file audited annual financial statements, management’s discussion and analysis and annual certifications for the year ended December 31, 2023 (collectively, the “Required Filings”) within the time period prescribed by securities laws.
Forward-Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. The forward-looking statements in this press release relate to comments that include, but are not limited to, statements related to the expected current and future state of operations, the unique market position of the Company, opportunities being explored for the Company’s future, the Company’s ability to repay or restructure its existing debt, the Company’s primary lender’s intention to foreclose on the Company’s assets, a reopening timeline for the Company’s operations, and the Company’s ability to continue as a going concern. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
About Select Sands Corp.
Select Sands Corporation is an industrial silica product company owning a 470-acre Northern White, Tier-1 silica sands property near Sandtown, Arkansas, U.S.A. The Company also owns a silica sand drying plant and rail loadout facility in Diaz, Arkansas. Our goal is to navigate current revenue challenges and identify solutions that benefit all stakeholders.
Company Contacts
Please visit www.selectsands.com or contact:
Zigurds Vitols
President & CEO
info@selectsands.com
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.
