Thursday, 18 September 2014 09:39 AM
Calgary, Alberta / ACCESSWIRE / September 18, 2014 / Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is pleased to announce, subject to regulatory approval, the completion of the transaction contemplated in the replacement and conversion agreement (the "Replacement and Conversion Agreement"), which was entered into between Canoel and each of the holders of the Company's outstanding 9% unsecured convertible (Swiss Francs) debentures dated January 11, 2012 (the "Notes").
Pursuant to the terms of the Replacement and Conversion Agreement, the holders of the Notes agreed to cancel their Notes in exchange for the issuance by Canoel of replacement notes, which are convertible into common shares at a deemed price of $0.215 per share (the "Replacement Notes"). In accordance with the terms of the Replacement and Conversion Agreement, the holders of the Replacement Notes will convert approximately 42% of the Replacement Notes into common shares of Canoel, and Canoel will in turn issue an aggregate of 2,510,058 common shares in the capital of the Company (the "Conversion").
Insiders of the Company held approximately 5.5% of the Notes and as such were issued approximately 5.5% of the Replacement Notes. AS Tonsenhagen Forretningssentrum 2, a company controlled by director Eric Larre, was issued approximately 4.6% of the Replacement Notes and Andrea Cattaneo, the President and CEO, was issued approximately 0.9% of the Replacement Notes pursuant to their respective Replacement and Conversion Agreements. It is expected that these Insiders will be issued approximately 13% of the common shares to be issued pursuant to the Conversion.
Issuance of these securities will enable Canoel to extinguish approximately CAD$540,000 principal amount of its outstanding Replacement Notes. This transaction is subject to the submission of final documentation and final approval of the TSX Venture Exchange.
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.
For further information, please contact:
Jose Ramon Lopez Portillo Andrea Cattaneo
Chairman of the Board CEO & President
Email: [email protected]
Telephone: (403) 938-8154
Telefax: (403) 775-4474
This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.
SOURCE: Canoel International Energy Ltd.