In its detailed report on the Aspenleaf proposal to recapitalize and acquire Arcan, ISS said:
"...in light of the high leverage level of the company which could potentially lead to going concern uncertainty, the transaction may be viewed as a better alternative for shareholders given the lack of other superior proposals at this stage. In addition, although the transaction involves both shareholders and debentureholders, there appears no significant evidence that shareholders are treated more unfavourably than debentureholders in terms of the transaction terms. Hence, on a balanced view, a vote FOR this resolution is warranted."
In its report, Glass Lewis said:
"All things considered, we are of the view that such a framework provides significantly greater near- and long-term certainty for investors, effectively fixes the potential dilutive impact of Arcan's 2016 and 2018 debentures and resolves the funding requirements associated with the Swan Hill development. Based on these considerations, Arcan's fairly dim stand-alone prospects, the board's thorough pre-execution pursuit of alternatives and the potential value to be realized - even from a reduced ownership position - in the successful development of Swan Hill, we believe shareholders should support this proposal. Accordingly, we recommend shareholders vote FOR this proposal."
Both ISS and Glass Lewis are widely recognized as leading independent proxy voting and corporate governance advisory firms. Their analyses and recommendations are relied upon by many major institutional investment firms, mutual funds and fiduciaries throughout
New investor presentation posted on Arcan website - www.arcanres.com
Arcan today posted a new investor presentation detailing why it believes it is in the best interest of all securityholders to vote FOR the Arrangement. Under this proposed transaction, among other things, Arcan will be recapitalized and acquired by Aspenleaf, all outstanding debentures will be paid out and
Aspenleaf brings the right people to unlock significant
The Aspenleaf proposal provides a progressive and creative transaction that will solve Arcan's overwhelming financial problem. In addition to paying down the massive debt and assuring funds to continue drilling and the timely expansion of the water flood at a pace that can offset natural declines and grow production, the proposal provides the seasoned leadership team required to direct the accomplished technical expertise that is currently in place at Arcan.
Successful oil and natural gas companies are built on a combination of attractive assets, sufficient capital and the right people. With the debt restructured to appropriate levels, the Aspenleaf team will have the opportunity to apply and continue to enhance the advanced horizontal drilling, completion and water flood techniques that have been developed and deployed in an effort to maximize recovery levels from the
"The ability to sustain continuous investment is critical to success and cannot be achieved under the current debt structure. Without this capital to fix the debt and fund our investment program, I am concerned that we will face the twin risks of mounting staff attrition and reductions in our banking facilities. This could result in restrictions on Arcan's ability to execute a continuous drilling program leading to production declines as natural decline takes its toll. The status quo is fragile and carries significant downside risk that jeopardizes operational and cash flow performance. Voting FOR this creative transaction will put the people and money in place to help unlock the full value of
Securityholders will vote on Arcan's future on
In order to get the message out to securityholders, Arcan has engaged
Arcan Corporate Events -
Arcan has closed the previously announced sale of its 14.5-kilometre Ethel oil sales pipeline. As well, Arcan has entered into an agreement with Fortaleza Energy Inc. to lease its StimSol assets,
Securityholders with questions or who require further information about the Arrangement
Arcan strongly encourages shareholders and debentureholders to read the comprehensive Information Circular, consult with their financial advisor and vote in person, or by proxy, in time to be counted at the securityholders meeting on
Any questions and requests for assistance may be directed to Arcan's proxy solicitation agent
North American Toll Free Phone:
Banks, Brokers and collect calls: 201-806-2222
Toll Free Facsimile: 1-888-509-5907
Forward-Looking Information and Statements
This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "will", "shall", "continue", "expect" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to, among other things, the following: the expected results of the Arrangement, the expected timing of the securityholders' meeting, the future upside of the
The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Arcan including, without limitation, expectations and assumptions relating to Arcan, Aspenleaf and Miura being able to receive all required regulatory approvals to consummate the Arrangement, the ability of the Corporation to obtain the required levels of securityholder approval for the Arrangement, Aspenleaf's, the Corporation's and Miura's future access to capital and certain commodity price and other cost assumptions underlying the statements regarding the future prospects of Arcan and Miura. Arcan believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: failure to realize the anticipated benefits of the transaction, failure to obtain the necessary approvals, or to otherwise satisfy the conditions of the transaction, in a timely manner, or at all; and certain other risks detailed from time to time in Arcan's public disclosure documents including, without limitation, those risks identified in this press release, the Information Circular and in Arcan's annual information form, copies of which are available on Arcan's SEDAR profile at www.sedar.com.
The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Arcan assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
(i)Permission to use quotations from the ISS report and the Glass Lewis report was neither sought nor obtained.
FOR FURTHER INFORMATION PLEASE CONTACT:
Arcan Resources Ltd. Terry McCoyChief Executive Officer firstname.lastname@example.org Arcan Resources Ltd. Douglas PennerPresident email@example.com Arcan Resources Ltd.Suite 2200, 500 - 4th Avenue S.W. Calgary, ABT2P 0H7 Telephone (403) 262-0321 Aspenleaf Energy Limited Bryan GouldPresident & Chief Executive Officer firstname.lastname@example.org Aspenleaf Energy LimitedSuite 1410, 530 - 8th Ave. S.W. Calgary, AB, T2P 3P8 Telephone (587) 390-6444 Source: Arcan Resources Ltd.