Raptor Capital Corporation announces reinstatement of trading on NEX and restructuring transactions



    CALGARY, June 6 /CNW/ - Raptor Capital Corporation ("Raptor" or the
"Corporation") ("NEX:RCP") is pleased to provide an operational update.
    Raptor was initially suspended by the TSX Venture Exchange (the
"Exchange") as a result of a Cease Trade Order ("CTO") issued by the Alberta
Securities Commission on May 7, 2007. On March 14, 2008, Raptor announced that
the CTO issued by the Alberta Securities Commission had been revoked effective
March 13, 2008, and proceeded expeditiously with its application to the TSX
Venture Exchange and NEX for a reinstatement of trading in the Corporation's
shares.
    Prior to the shares of the Company being reinstated to trading by the
Exchange a subsequent CTO was issued by the Alberta Securities Commission on
May 7, 2008 as the Company was late in filing its financial statements for the
year ended December 31, 2007. As announced by the Corporation on June 3, 2008,
the CTO issued by the Alberta Securities Commission of May 7, 2008 had been
revoked as of May 30, 2008.
    Accordingly, the Company has been advised by the Exchange that the shares
of the Company are scheduled for reinstatement on NEX effective the opening
June 9, 2008.

    Corporate Restructuring
    -----------------------
    The Corporation is proposing, subject to the approval of its shareholders
and the TSX Venture Exchange and NEX, to conduct a corporate reorganization.
The reorganization would involve a consolidation of the outstanding shares of
the Corporation on a 20:1 basis. There are currently 84,643,303 common shares
outstanding. Post-consolidation, there would be 4,232,165 common shares
outstanding. The proposed consolidation is subject to regulatory and
shareholder approval. The Corporation intends to seek shareholder approval for
the restructuring transactions at a special shareholders' meeting to be held
once regulatory approval is secured.
    Also subject to regulatory and shareholder approval, the Corporation
intends to pursue its previously announced issuance of shares as settlement
with certain debenture and loan holders. The total amount of debt to be
settled at a proposed conversion price of $0.15 is $395,000 in principal and
$137,353 in interest estimated as at June 13, 2008 for a total of $532,245,
and a total issuance, on a post-consolidation basis, of 3,549,021 common
shares. $245,000 of the principal amount is due to holders of 10% convertible
debentures of the Corporation, and $150,000 of the principal amount is due to
other debt holders, including $100,000 payable to the holder of a demand
debenture. The Corporation also proposes to settle certain debt owing to
holders of promissory notes at a deemed price per common share of $0.105, for
a principal amount owing of $140,000, plus interest of $6,466 estimated as at
June 13, 2008, for a total issuance of 1,394,914 common shares. The aggregate
number of shares that would be issued pursuant to shares for debt transactions
should these transactions receive the requisite shareholder and regulatory
approval would be 4,943,935 common shares.
    Insiders of the Corporation would receive an aggregate of 1,744,914
common shares of the Corporation pursuant to the proposed shares for debt
transactions, 350,000 at the $0.15 conversion rate, and 1,394,914 at the
$0.105 conversion rate. The Corporation has determined that it is exempt from
the requirement to obtain an independent valuation of the transaction as no
securities of the Corporation are listed on the Toronto Stock Exchange, the
New York Stock Exchange, the American Stock Exchange, the NASDAQ Stock Market,
or a stock exchange outside of Canada and the United States. The Corporation
intends to seek disinterested shareholder approval for the proposed shares for
debt transactions at a special shareholders' meeting to be held once
regulatory approval is secured.
    The Corporation will be holding an annual general meeting of the
shareholders on June 13, 2008. The above-referenced transactions will not be
put forward to the shareholders at that date for their approval, but at a
special shareholders meeting to be held at a later date.

    Operational Update
    ------------------

    Whiskey Creek, Alberta:
    -----------------------
    Raptor is still waiting for well 6-8 at Whiskey Creek to come on stream
again. This well has not been on stream since Esso's Quirk Creek plant turn
around of May 2007. According to the operator the well may be on stream by the
first week in July 2008. Esso is again talking to the operator about
compression at the plant to assist in solving the production problems of the
four (4) wells operated by them.

    Joffre, Alberta:
    ----------------
    At Joffre the Corporation and its partners are attempting to have well
7-34-38-26 W4M, which is currently producing a small amount of gas from the
Ostracod zone, twinned and drilled to test the Glauconite zone, which has oil
indicated on logs. Raptor has 30.578% working interest in the Glauconite zone
in the section. The Corporation will be pursuing the drilling of this well
after break up. This section also has a significant coal bed methane
development prospect in the Horseshoe Canyon.

    Wandering River, Alberta:
    -------------------------
    At Wandering River the Corporation currently has one (1) well producing
at approximately 100 mcf/day (Raptor 25% BPO and 12.5% APO) and three (3)
wells that are candidates for the installation of plunger lifts. The operator
will not be doing any further work on this project in the foreseeable future.
Raptor has a 12.5% working interest in sixteen (16) undrilled sections in the
Wandering River area.

    Clay, Alberta:
    --------------
    At Clay, Alberta the Corporation has an interest in one (1) producing gas
well and two (2) shut in gas wells. The operator of these wells anticipates
putting the 6-30-60-13 W4M well back on stream after doing additional remedial
work on the well. Raptor has a 40% working interest in these two wells.

    Future Exploration and Development
    ----------------------------------
    The Corporation is continuing to review possible farm-in opportunities in
Alberta and also in South America.

    This news release may contain certain forward-looking statements that
reflect the current views and/or expectations of Raptor Capital Corporation
with respect to its performance, business and future events. Such statements
are subject to a number of risks, uncertainties and assumptions. Specifically,
certain of the transactions referenced herein are subject to regulatory and/or
shareholder approval, and there can be no guarantee that such approvals will
be received, in a timely manner or at all. Actual results and events may vary.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    %SEDAR: 00009590E




For further information:

For further information: William J. Wylie, Raptor Capital Corporation,
T: (403) 266-5515 (Ext. 4), E: Bill@raptap.com

Organization Profile

RAPTOR CAPITAL CORPORATION

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