CALGARY, Alberta, Oct. 03, 2017 (GLOBE NEWSWIRE) -- Petrocapita Income Trust (CSE:PCE.UN) (“ Petrocapita” or the “Trust ”) announces the extension of the expiry date of certain warrants (the “ Warrants ”) and the re-pricing of such Warrants (the “ Warrant Amendment ”), which were issued in connection with Petrocapita’s previously announced private placements of 8% secured convertible debentures (the “ Convertible Debentures ”).
Details related to the offering of Convertible Debentures to date have been filed with the Canadian Securities Exchange ( www.theCSE.com ) and under Petrocapita’s profile on SEDAR ( www.sedar.com ).
Warrant Terms
Pursuant to the Warrant Amendment, the expiry date of the Warrants issued in conjunction with the Convertible Debentures to date will be extended from December 31, 2018 to December 31, 2020, the maturity date of the Convertible Debentures, provided that the expiry date of any Warrants that were issued prior to December 31, 2015 shall be extended to the date that is 5 years from the date such Warrants were issued. However, if the closing price of common trust units of the Trust (the “ Common Trust Units ”) exceeds the amended exercise price by the applicable private placement discount prescribed by the Canadian Securities Exchange for any 10 consecutive trading days (20% based on current market price), the expiry date of the Warrants shall be amended to 30 days. The amended expiry date shall be announced by press release and the 30 day period will commence 7 days from the end of the 10 day period.
Also, pursuant to the Warrant Amendment, the Warrants have been re-priced so that the exercise price of the Warrants shall be $0.88. The re-pricing has been approved by substantially all of the Warrant holders and the CSE.
The Trust currently has 4,482,300 Warrants outstanding.
About Petrocapita
Petrocapita Income Trust is a Specified Investment Flow Through trust developing and acquiring heavy oil production and infrastructure assets in the Lloydminster area of east central Alberta and west central Saskatchewan through its wholly owned subsidiary, Petrocapita Energy Corp. Petrocapita owns and/or operates 445 gross (426.3 net) oil wells, 91 gross (22 net) gas wells, 19 produced water disposal facilities, 3 custom oil processing facilities, 4 natural gas compressor stations, 127.25 km in pipelines, oil well service rigs, fluid haul tractors and trailers, and well site processing equipment. It is seeking accretive opportunities to acquire both oil production and complimentary midstream assets during a cyclical low in the oil and gas markets.
For further information, please contact:
Alex Lemmens, President Telephone: (587) 393-3460
OR
Steve Elliott, Investor Relations Telephone: (587) 700-8408
This release is not an offer of securities of the Trust for sale in the United States. The Common Trust Units and Warrants of the Trust have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and the Common Trust Units and Warrants may not be offered or sold in the United States except pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States.
FORWARD LOOKING INFORMATION:
Certain statements and information contained in this news release constitute forward-looking statements and forward-looking information as defined under applicable securities legislation (collectively, " forward-looking statements "). These forward-looking statements relate to future events or Petrocapita's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential" and "capable" and similar expressions are intended to identify forward-looking statements. In particular, and without limitation, this news release contains forward-looking statements pertaining to: the occurrence of the Consolidation and the Warrant Amendment; the intention of the Trust to retain the same name and ticker symbol; the extension of the expiry date of the Warrants; the re-pricing of the Warrants; and required approvals from the Canadian Securities Exchange and the warrant holders to complete the Consolidation and the Warrant Amendment. These 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 statements. Although management believes that the expectations conveyed by any forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. With respect to forward-looking statements contained in this news release, assumptions have been made regarding, among other things: Petrocapita’s continued operations, the anticipated benefits of the Consolidation and the Warrant Amendment, the continued offering of the Convertible Debentures, and the receipt of required approvals from the Canadian Securities Exchange and the warrant holders. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the risks related to: the Consolidation and the Warrant Amendment are not approved by the Canadian Securities Exchange and the warrant holders; the anticipated benefits of Consolidation and the Warrant Amendment are not realized; volatility in market prices and demand for crude oil; general economic, market and business conditions; difficulties encountered in the development and production of Petrocapita's reserves; difficulties encountered in the upgrading and/or operation of Petrocapita's facilities; the loss of key personnel; the failure to realize the benefits of upgrading Petrocapita's facilities; the inability to generate sufficient cash flow from operations to meet current and future obligations; the inability to obtain required debt and/or equity capital on acceptable terms or at all; changes in tax law or other adverse regulatory, royalty or tax changes; diversion of management to manage unforeseen business or operating issues; current global financial conditions.
Readers are cautioned that the risk factors set forth above should not be construed as exhaustive. Additional information on risks, uncertainties and factors that could affect the foregoing forward-looking information and/or Petrocapita's operations or results therefrom is included in its filings with the securities commissions which have been filed under Petrocapita's profile on SEDAR (www.sedar.com).
Although the forward-looking statements contained in this news release are based upon what Petrocapita's management believes to be reasonable assumptions, Petrocapita cannot assure investors that actual results will be consistent with such information.
Forward-looking statements reflect management's current beliefs and are based on information currently available to Petrocapita. Petrocapita cautions readers not to place undue reliance on Petrocapita's forward-looking statements. The forward-looking statements are made as of the date of this news release and Petrocapita assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable securities laws.
