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TSX-V SYMBOL: ANG
CALGARY, Dec. 31 /CNW/ - AltaCanada Energy Corp. (the "Corporation") today announces that it has entered into a Credit Facility with Brookfield Bridge Lending Fund Inc. ("Brookfield") and ANG Partners, Ltd. ("ANG Partners") providing for a loan of $3,250,000. The interest rate on the loan is 8% per annum and the loan is due July 30, 2010. Proceeds from the Private Placement were used to pay down bank debt as discussed in the Corporation's Third Quarter Report and to provide a $500,000 operating line of credit. In connection with the Credit Facility the Corporation has issued each of Brookfield and ANG Partners warrants to purchase 1,000,000 Common Shares of the Corporation at $0.10 per share until December 30, 2011 (the "Warrants").
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 entering into the Credit Facility and the issuance of the Warrants is a "related party transaction" as ANG Partners, which is controlled by James Collins, a director of the Corporation, is providing 50% of the loan and receiving 50% of the Warrants.
The Credit Facility and Warrants was approved by four of the five directors, James Collins having abstained from the vote. The directors who voted determined that exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101, are available since the fair market value of the consideration paid by the related party in connection with the Credit Facility and Warrants is for an amount less than $2,500,000.
Upon exercise of all of the Warrants James Collins will own or control 16,576,591 Common Shares or 21.6% of the outstanding Common Shares. James Collins also owns or controls a $1,519,650 convertible debenture that is convertible into Common Shares at $0.35 per share, a $1,000,000 convertible debenture that is convertible into Common Shares of $0.10 per share and stock options exercisable for 245,000 Common Shares at an average exercise price of $0.35 per share.
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.
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.
SOURCE ALTACANADA ENERGY CORP.
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