CALGARY, July 26, 2013 /CNW/ - ArPetrol Ltd. ("ArPetrol" or the "Company") (TSXV: RPT) announces that, at the annual and special meeting of
shareholders of the Company ("Shareholders") to be held on August 21, 2013 (the "Meeting"), Shareholders will be asked to consider and approve a potential
consolidation of the issued and outstanding common shares of the
Company ("Common Shares") on a basis of up to 50 pre-consolidated shares for each
post-consolidation share, or such lesser ratio that the board of
directors of the Company (the "Board"), in their sole discretion, may determine to be appropriate (the "Consolidation").
Although approval for a potential Consolidation is being sought at the
Meeting, such a Consolidation would only become effective at a date in
the future if the Board considers it to be in the best interests of the
Company to implement such a Consolidation. The Company believes that a
future Consolidation may enhance the marketability of the Common Shares
as an investment and may facilitate future financings, as the Company
is subject to the TSX Venture Exchange ("TSXV") minimum pricing rules for financings. The special resolution will
authorize the Board to elect not to proceed with the Consolidation if
the Consolidation is not deemed to be in the best interests of the
Company. The Consolidation is subject to shareholder approval at the
upcoming Meeting and to TSXV acceptance.
Assuming a consolidation ratio of 50 pre-Consolidation Common Shares for
each post-Consolidation Common Share (the Board being permitted to
consolidate on a lesser ratio in their sole discretion), the
Consolidation would result in the 572,536,704 pre-Consolidation Common
Shares that are currently outstanding being reduced to approximately
11,450,734 post-Consolidation Common Shares.
The name of the Company will not be changed in conjunction with the
About ArPetrol Ltd.
ArPetrol is a Calgary-based publicly traded company engaged in oil and
natural gas exploration, development and production and third-party
natural gas processing in Argentina, where it owns and operates a gas
processing facility with capacity of 85 million cubic feet (MMcf) per
day. The Company's common shares are listed on the TSXV under the
This news release contains certain forward‐looking statements relating,
but not limited, to the Consolidation, the marketability of Common
Shares post-Consolidation and the ability to secure financings.
Forward‐looking information typically contains statements with words
such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", "project", or similar words suggesting future
outcomes. The Company cautions readers and prospective investors in the
Company's securities not to place undue reliance on forward‐looking
information as, by its nature, it is based on current expectations
regarding future events that involve a number of assumptions, inherent
risks and uncertainties, which could cause actual results to differ
materially from those anticipated by the Company. Forward-looking
information is based on management's current expectations and
assumptions regarding the Consolidation, the marketability of Common
Shares post-Consolidation, the Consolidation's facilitation of a
financing, and the Company's ability to secure a future financing.
Although the Company believes the expectations and assumptions
reflected in such forward‐looking information are reasonable, they may
prove to be incorrect.
Forward‐looking information involves significant known and unknown risks
and uncertainties. A number of factors could cause actual results to
differ materially from those anticipated by the Company, including but
not limited to risks associated with uncertainty regarding shareholder
approval of the Consolidation, the marketability of Common Shares
post-Consolidation and the ability to secure financings. The
forward‐looking information included herein is expressly qualified in
its entirety by this cautionary statement. The forward‐looking
information included herein is made as of the date hereof and the
Company assumes no obligation to update or revise any forward‐looking
information to reflect new events or circumstances, except as required
Additional information relating to the Company is also available on
SEDAR at www.sedar.com.
ArPetrol's head office address is 700, 815 8 Avenue S.W., Calgary, AB
Neither the TSXV nor its Regulation Services Provider (as defined in the
policies of the TSXV) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE: ArPetrol Ltd.
For further information:
Tim Thomas, President and Chief Executive Officer
Ian Habke, Chief Financial Officer
Main Telephone: 403-263-6738