/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TSX-V SYMBOL: ANG
CALGARY, May 12 /CNW/ - AltaCanada Energy Corp. (the "Corporation")
announces that it has today closed the previously announced non-brokered
private placement of a convertible debenture (the "convertible debenture") in
the principal amount of CDN$1,000,000 (the "Private Placement") effective May
1, 2009. The convertible debenture will yield an interest rate of 9% paid
semi-annually, mature on January 30, 2011 (the "Maturity Date") and is
convertible into common shares ("Common Shares") of the Corporation at $0.10
per share (the "Conversion Price"). Prior to the Maturity Date, upon the
simple average of the closing price per share for the Common Shares for any 10
consecutive trading days selected by the Corporation commencing not more than
60 trading days before such date on the TSX Venture Exchange becoming equal or
greater than $0.20 per Common Share (subject to the terms of the convertible
debenture) any principal amount remaining on such date shall be deemed to be
converted immediately in its entirety, into fully paid and non-assessable
Common Shares based on the Conversion Price. Proceeds from the Private
Placement will be used for corporate purposes.
Pursuant to the policies of the TSX Venture Exchange and Multilateral
Instrument 61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61-101"), the Private Placement is classified as a "related
party transaction" as a partnership controlled by James W. Collins, a director
of the Corporation, was the sole subscriber for the convertible debenture.
The Corporation received a conditional approval (the "Conditional
Approval") from the TSX Venture Exchange in connection with the Private
Placement. One of the conditions of the Conditional Approval is that James W.
Collins must provide an undertaking to the TSX Venture Exchange stating that
he will not convert any of the convertible debentures (including the debenture
issued in June 2008) owned or controlled by him such that the number of Common
Shares held directly or indirectly by him would exceed 19.9% of the total
number of issued and outstanding Common Shares, unless disinterested holders
of Common Shares approved such conversion and the creation of a new Control
Person (as such term is defined in the TSX Venture Exchange Company Manual).
The Corporation intends to seek such approval from the disinterested holders
of Common Shares at a special meeting to be called for Monday, June 29th, 2009
at 09:00 am.
The Corporation is engaged in the acquisition, exploitation and
production of crude oil and natural gas reserves in Western Canada and
Montana. For more information on the Corporation, visit www.altacanada.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Don Foulkes, President & CEO, Telephone: (403)
265-9091 (ext 248), Fax: (403) 265-9021, Email: firstname.lastname@example.org; Don
Jackson, Exec VP & COO, (403) 265-9091 (ext 234), (403) 265-9021