CALGARY, Jan. 4 /CNW/ - Petrowest Energy Services Trust (TSX: PRW.UN)
(the "Trust") is pleased to announce the closing of an offering of
secured convertible debentures (the "Debentures") for gross proceeds of
$3.75 million. The Debentures were privately placed with individuals
who are managers of various operational divisions of the Trust.
The Debentures will pay interest at 10.0% per annum, payable
semi-annually in arrears on May 31 and November 30, commencing May 31,
2011, with a maturity date of December 30, 2013. The Debentures are
secured against certain accounts receivable of the Trust and principal
and interest on the Debentures are payable from the collections on
these accounts receivable. The Debentures are convertible to Trust
Units at a conversion price of $0.15 per Trust Unit prior to November
30, 2011 and $0.175 per Trust Unit subsequent to this date to a maximum
of 8,500,000 Trust Units (unless disinterested unitholder approval is
obtained in accordance with the requirements of the Toronto Stock
Exchange, in which case the full amount of the Debentures would be
convertible for 25,000,000 Trust Units).
The proceeds of the offering of the Debentures will be used for general
working capital purposes.
Several of the subscribers for the Debentures are related parties within
the meaning of Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions and the offering of the Debentures was completed in reliance on
exemptions from the formal valuation and minority approval requirements
of that instrument.
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements that involve
substantial known and unknown risks and uncertainties. These
forward-looking statements are identified by their use of terms and
phrases such as "anticipate," "achievable," "believe," "expect,"
"estimate," "plan," "intend," "project," "may," "should", "could",
"predict", "may," "will," or similar words suggesting future outcomes
or language suggesting an outlook. Forward-looking statements and
information are based on Petrowest's current beliefs as well as
assumptions made by and information currently available to Petrowest
concerning anticipated business performance. Although management of
Petrowest considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to many external variables that
are beyond Petrowest's control, such as fluctuating prices for crude
oil and natural gas, changes in drilling activity, and general local
and global economic, political, business and weather conditions. If
any of these, or other uncertainties, materialize the actual results of
Petrowest may vary materially from those expected.
SOURCE Petrowest Energy Services Trust
For further information:
please contact Rick Quigley, President and CEO, or Lloyd A. Wiggins, Chief Financial Officer, at 1-888-830-0881 and (403) 237-0881, respectively, or firstname.lastname@example.org