CMQ provides update on indebtedness
CALGARY, April 2, 2014 /CNW/ - CMQ Resources Inc. (TSXV: NV) ("CMQ") is providing an update regarding the previously announced receipt of a notice of intention to enforce security (the "Notice") from Matco Investments Ltd. ("Matco"). On September 24, 2013 CMQ announced that it was indebted to Matco and its affiliates in the aggregate amount of $7,545,000, comprised of: (i) $4,000,000 represented by outstanding debentures plus accrued interest thereon of $544,000; (ii) $1,000,000 in respect of previous secured advances; (iii) $1,650,000 unsecured advances; and (iv) aggregate accrued interest on secured and unsecured advances of $351,000, and had received a notice from Matco of its intention to enforce its security.
On November 5, 2013 CMQ issued a press release indicating Matco had previously agreed to forbear until October 20, 2013 from enforcing its rights and remedies against CMQ in respect of substantially all amounts for which CMQ was previously indebted to Matco. Such forbearance period has elapsed and Matco currently remains both entitled and able to enforce on its existing security and pursue such other remedies as may be available to Matco in connection with the satisfaction and repayment of all outstanding amounts owed by CMQ. As at March 31, 2014 CMQ is indebted to Matco and its affiliates in the aggregate amount of $8,434,115, comprised of: (i) $4,000,000 represented by outstanding debentures plus accrued interest thereon of $733,562; (ii) $1,000,000 in respect of previous secured advances; (iii) $2,199,663 unsecured advances; and (iv) aggregate accrued interest on secured and unsecured advances of $500,890.
CMQ continues to engage in discussions with Matco in an effort to attempt to negotiate the potential further forbearance of enforcement on its indebtedness and additional financing required in connection with its existing projects. There can be no assurances that such additional forbearance or any viable financing will be obtained. In the event that no such additional forbearance or financing from Matco can be obtained, CMQ expects that it will be unable to continue its operations and to operate as a going concern.
Matco is a private corporation controlled by Mr. Ronald Mathison, a director of CMQ. Matco is a control person of CMQ, holding approximately 49.99% of the issued and outstanding shares of CMQ. Neither the 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.
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws, including with respect to the availability of continued forbearance and financing from Matco and CMQ's future ability to carry on operations. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements typically contain statements with words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "intend", "may", "will", "shall", "project", "would", "should", or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to CMQ and shareholders. Forward-looking statements are based on management's current beliefs as well as assumptions made by, and information currently available to, management. Though management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. The forward-looking statements contained in this press release are made as of the date hereof and CMQ does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE CMQ Resources Inc.For further information: Ryan Jennings, Corporate Secretary, CMQ Resources Inc., Tel: (403) 294-0101