CALGARY, Sept. 30 /CNW/ - Paris Energy Inc. ("Paris" or the "Company") is pleased to announce that it intends to complete a non-brokered private placement of $330,000 principal amount of 10% convertible secured debentures (the "Debentures"), subject to receipt of all applicable regulatory approvals.
Humboldt Capital Corp. ("Humboldt") has agreed to subscribe for the entire $330,000 principal amount of Debentures to be issued pursuant to the private placement. Humboldt currently holds approximately 19% of the issued and outstanding common shares ("Common Shares") of the Company. Following completion of the private placement, and assuming the full conversion of the Debentures acquired pursuant thereto, Humboldt will hold approximately 49% of the issued and outstanding Common Shares.
Neither the Company nor, to the knowledge of the Company after reasonable inquiry, Humboldt has knowledge of any material information concerning the Company or its securities that has not been generally disclosed.
The Debentures will be repayable two years from the date of issue, will bear interest at 10% per annum payable annually in cash and will be convertible into Common Shares by the holder at any time prior to maturity at a rate of $0.06 per Common Share, subject to adjustment in certain circumstances. In addition, the Company shall have the right to redeem the Debentures at any time following the date that is six (6) months from the issue date, provided that the Common Shares have traded at a price greater than $0.10 per share for a period of at least 20 consecutive trading days. The Debentures will be a secured obligation of the Company.
The Debentures and any Common Shares issued upon conversion of the Debentures will be subject to a hold period of four months and one day from the closing date.
The proceeds of the offering will be used by the Company for the repayment of certain outstanding debt and for general corporate purposes.
Paris anticipates closing the private placement on or about October 7, 2009.
Certain information and statements contained in this press release constitute forward-looking information, including, without limitation, expectations regarding the completion of the private placement and the timing thereof, receipt of regulatory approval, the intention of Humboldt to subscribe for Debentures, Humboldt's ownership of Common Shares and the use of proceeds. These forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, the inability to complete the private placement or to obtain the required regulatory approval. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Paris's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits that Paris will derive therefrom. Paris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE PARIS ENERGY INC.
For further information: For further information: Paris Energy Inc., 2000, 633 - 6th Avenue S.W., Calgary, Alberta, T2P 2Y5, Attention: John McLeod, Phone: (403) 264-5545, Fax: (403) 261-4072, Email: email@example.com