OSLO, Norway, March 7, 2019 /CNW/ - North Energy Capital AS ("NEC") and North Energy ASA ("North Energy") announce that on March 7, 2019, North Energy acquired 18,548,750 common shares ("Common Shares") of Touchstone Exploration Inc. ("Touchstone") from NEC, representing approximately 11.55% of the total number of issued and outstanding Common Shares for non-cash consideration consisting of repayment of preference capital with an approximate value of CAD$3,901,802 (CAD$0.2135 per Common Share), calculated with reference to the trading price of the Common Shares. Prior to the acquisition (the "Transaction"), North Energy owned approximately 99% of the share capital of NEC. The Transaction was completed pursuant to a private agreement between the affiliated companies as part of a publicly disclosed corporate simplification strategy undertaken by North Energy. Prior to the Transaction, NEC owned 18,548,750 Common Shares, representing approximately 11.55% of the number of issued and outstanding Common Shares. As a result of the Transaction, NEC currently holds no Common Shares of Touchstone.
On February 19, 2019, NEC purchased 3,750,000 additional Common Shares by way of participation in a wider private placement offering of Common Shares in order to maintain its approximately pro-rata ownership level in Touchstone (the "Additional Acquisition"). The completion of the Additional Acquisition did not materially modify NEC's ownership percentage which at the time of the Additional Acquisition was approximately 11.46% of the 129,021,428 outstanding Common Shares.
NEC acquired the additional Common Shares in the Additional Acquisition for investment purposes, and the disposition of the Common Shares from NEC to North Energy was effected for business purposes as part of North Energy's corporate simplification strategy. North Energy will continue to monitor the business, prospects, financial condition and potential capital requirements of Touchstone. Depending on its evaluation of these and other factors, North Energy may from time to time in the future increase or decrease its direct or indirect ownership, control or direction over the Common Shares or other securities of Touchstone through market transactions, private agreements, subscriptions from treasury or otherwise.
Touchstone's head office address is 4100, 350 - 7th Avenue SW, Calgary, Alberta, T2P 3N9.
SOURCE North Energy Capital AS
For further information: including a copy of the corresponding report filed with Canadian securities regulators, contact: Knut Sæberg, +47 22 01 79 50, North Energy ASA, Tjuvholmen allé 19, 0252, Oslo, Norway