Rice Investment Group acquires minority stake in Cold Bore Technology

Rice Investment Group has invested undisclosed amount in Calgary based Cold Bore Technology Inc. for a minority stake. Toby Rice will join Cold Bore’s board of directors that also include Murray Smith, Blair Layton, Gregg Sedun and Glen Hawker.

Cold Bore is a global leader in fracturing optimization software, developing the first Industrial Internet of Things based Electronic Completions Recorder and remote frac operating system deployed by Cold Bore’s SmartPAD(TM) service.

Zelos Capital Ltd. acted as exclusive financial advisor to Cold Bore with respect to the financing. Clark Wilson LLP and Blake, Cassels & Graydon LLP acted legal advisor to Cold Bore and Rice Investment Group respectively.

Founded in 2012, Cold Core has been backed by Canadian and international private investors.

photo credit: Cold Bore

News Release

Cold Bore Technology Inc. Announces Financing by Rice Investment Group and New Director Appointment

CALGARY, Oct. 15, 2018 /CNW/ – Cold Bore Technology Inc. (“Cold Bore” or the “Company”) is pleased to announce the closing of an investment by Rice Investment Group (“RIG”) as well as the appointment of Toby Rice to the Board of Directors.

Cold Bore is a global leader in fracturing optimization software, developing the first Industrial Internet of Things based Electronic Completions Recorder and remote frac operating system deployed by Cold Bore’s SmartPADTM service. The Company’s proprietary algorithms and machine learning software encourages Positive Efficiency Gains and effectively addresses Non-Productive Time, directly in the field, resulting in significant cost savings and a proven reduction in completion program duration. Cold Bore has established an impressive customer base which is expected to generate increasing cashflow as the company continues to achieve impressive market adoption. Cold Bore will deploy invested capital towards enhancement of data analytics platform, marketing initiatives, and for general corporate purposes.

Toby Rice was the former President, Chief Operating Officer, and Founder of Rice Energy. Mr. Rice led Rice’s execution of its high-growth strategy, amassing a 250,000 net acre position in the core of the Marcellus and Utica. Mr. Rice’s data-driven approach to operations consistently delivered the best performing wells in the Appalachian basin. Mr. Rice also created Rice’s digital work environment which enabled effective collaboration and innovation, allowing Rice to continuously evolve and easily scale with fewer people and streamlined processes. Mr. Rice sources and evaluates RIG investment opportunities.

The management team of Cold Bore is led by Blair Layton, Brett Chell, and Nicolai Pacurari. Collectively, the management team brings over 60 years of unparalleled drilling and oil field services experience, with a solid track record of entrepreneurial accomplishment. The Board of Directors of Cold Bore is comprised of Toby Rice, Murray Smith, Blair Layton, Gregg Sedun and Glen Hawker.

“We are excited to be partnering with Rice Investment Group, a leading investment firm in the energy sector, as well as the addition of Toby Rice to the Board of Directors,” Mr. Chell said. “We bring a unique opportunity to the North American oil and gas industry, allowing huge efficiencies to be gained by our partners. We believe the Rice Investment Group partnership will yield significant strategic opportunities as we continue to expand in both the United States and Canada.”

Zelos Capital Ltd. acted as exclusive financial advisor to Cold Bore with respect to the financing. Clark Wilson LLP acted as Cold Bore’s legal advisor. Blake, Cassels & Graydon LLP acted as RIG’s legal advisor with respect to the financing.

About Cold Bore
Cold Bore Technology Inc. (“Cold Bore”) is a global leader in fracturing optimization software, developing the first Electronic Completions Recorder and Remote Frac Operating System through Cold Bore’s SmartPADTM service.

About RIG
Rice Investment Group (“RIG”) is a US$200 million multi-strategy fund investing in all verticals of the oil and gas sector with a focus on partnering where RIG’s operational, technical, and strategic experience add value. RIG is led by the former Rice Energy management team, which sold to EQT Corporation for US$8.2 billion in November 2017.

RIG seeks to invest between US$1 million – US$40 million across the capital stack in the upstream, midstream, oilfield services, and energy technology sectors. RIG can invest passively alongside an existing sponsor-management team or actively as lead financial sponsor.

About Zelos
Zelos Capital Ltd. (“Zelos”) is a merchant bank which provides a range of financial advisory services including strategic review and structuring, equity and debt capital raising, fairness opinions, mergers & acquisition advisory and other strategic consulting services to lower middle market companies.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Blair Layton
Cold Bore Technology Inc.
blair.layton@coldboretechnology.com

Brett Chell
Cold Bore Technology Inc.
brett.chell@coldboretechnology.com

Kareen Stangherlin, Founding Partner and Chief Executive Officer
Zelos Capital Ltd.
kareen.stangherlin@zelosglobal.com

Gilbert Bong, Founding Partner and President
Zelos Capital Ltd.
gilbert.bong@zelosglobal.com

Michael Smith, Partner
Zelos Capital Ltd.
michael.smith@zelosglobal.com

SOURCE Cold Bore Technology Inc.

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.