JEDDAH, Saudi Arabia, Nov. 19 /CNW/ - Al-Najah Advanced Technology Co. Ltd. ("NAT"), a private company based in Jeddah, Kingdom of Saudi Arabia whose focus is on investment in technology and technology-based ventures and companies, announced that it has subscribed for a convertible secured debenture of Canadian Oil Recovery & Remediation Ltd. ("CORRE"), a Canadian public company listed on the TSX Venture Exchange (symbol "CVR"), in the principal amount of CDN$4,250,000 (the "Debenture") and 21,250,000 warrants to purchase common shares of CORRE at an exercise price of CDN$0.20 per common share (the "Warrant").
The principal amount of the Debenture has been deposited in escrow with NAT's Canadian counsel and CDN$1,400,000 of such principal amount has been released and delivered to CORRE. The release from escrow of the remaining CDN$2,850,000 of the principal amount of the Debenture is subject to the satisfaction of certain conditions set out in the Debenture and related agreements, including the delivery by NAT, in its sole discretion, to CORRE of a notice of acceptance of CORRE's business and financial plan. In the event of such acceptance by NAT, the remaining CDN$2,850,000 of the principal amount of the Debenture would be released to CORRE and the full principal amount of CDN$4,250,000 million of the Debenture would then automatically be converted into common shares of CORRE at a price of $0.20 per share. Additionally, in the event of such acceptance by NAT, NAT would then become eligible to exercise, in its sole discretion, all or any portion of the Warrant. In the event that NAT, in its sole discretion, does not deliver to CORRE a notice of acceptance of CORRE's business and financial plan on or before May 16, 2010, all amounts then held in escrow are to be released and returned to NAT as a partial repayment of principal under the Debenture.
NAT does not currently own or exercise control or direction over any common shares of CORRE. In the event of a conversion of the CDN$1,400,000 released from escrow to CORRE, NAT would own 7,000,000 common shares of CORRE, representing approximately 12.7% of CORRE's issued and outstanding common shares (on a partially-diluted basis). In the event of a conversion of the entire principal amount of the Debenture and the full exercise by NAT of the Warrant, NAT would own 42,500,000 common shares of CORRE, representing approximately 46.8% of CORRE's issued and outstanding common shares (on a partially-diluted basis).
NAT has purchased the Debenture and the Warrant from CORRE in the ordinary course of its business for investment purposes. NAT may from time to time, in its sole discretion, depending on market or other conditions, exercise all or any portion of the Warrant or any of the conversion rights under the Debenture, acquire additional securities of CORRE, dispose of some or all of the existing or additional securities it holds or may hold, or may determine not to proceed with any conversion of the Debenture or exercise of the Warrant or any other transaction in respect of CORRE or its securities.
SOURCE AL-NAJAH ADVANCED TECHNOLOGY CO. LTD.
For further information: For further information: or to receive a copy of the early warning report to be filed by NAT with securities regulatory authorities in Canada in connection with this press release, please contact: Sohail H. Khan, Al-Najah Advanced Technology Co. Ltd., P.O. Box 8918, Jeddah 21492, Kingdom of Saudi Arabia, Telephone: + 966 2 664 3033 (Ext. 55102)