ENP Newswire -
Release date- 11072014 -
In addition to the general matters to be acted upon at an annual meeting, shareholders will also be requested to consider a 'Debt to Equity Conversion' and the creation of a new 'Control Person' of the Company.
Debt to Equity Conversion
In order to meet the requirements of a covenant put in place in
The Company wishes to clarify that the price at which the shares will be issued has been set as the greater of (a)
Also, the Company has entertained discussions with 2016 debenture holders who are not related parties. As a result of these discussions, the Company is anticipating that it will convert up to an additional
With these conversions (including the maximum non-insider conversion), the debt to equity ratio (2) improves substantially; from 52:1 to 4:1.
Based on 10 day volume weighted average price immediately prior to issuance
Defined as current assets less current liabilities less long-term portion of debenture and equipment financing debt. Equity defined as Shareholders Equity and Non-controlling interest.
Creation of a new Control Person
Following the Debt to Equity Conversion transaction, a new control person, as defined by the TSXV, may be created whereby a number of individuals may hold more than 20% of the outstanding voting shares of the Company. The Board is seeking disinterested shareholder approval for the creation of this new 'control person'.
All of the above matters have been described in the Company's Management Information Circular which has been mailed to shareholders and which is available on the Company's website.
Company President and CEO,
The Company will be providing updates on its contracting position and second quarter volumes in the coming days.
President & CEO
Toll Free: 1.877.262.5888
Forward Looking Information and Statements
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information.
A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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