CALGARY, June 21, 2013 /CNW/ - (TSXV: ROZ) - Rodinia Oil Corp. ("Rodinia") announces that its strategic review process being conducted with its financial advisor has now ended without success.
On September 18, 2012, Rodinia announced that it had engaged CIBC World Markets Inc. ("CIBC") as exclusive financial advisor to assist the Board of Directors' Special Committee in exploring and evaluating a range of strategic alternatives with the view to maximizing shareholder value. Such strategic alternatives could have included, but were not limited to, a sale, farmout or joint venture of all or a portion of the assets of Rodinia, a merger or other business combination of Rodinia with another entity, a recapitalization of Rodinia, a sale of Rodinia as a whole or any combination thereof.
Over the past nine months, various parties have signed confidentiality agreements with Rodinia and have reviewed its confidential data. However, no proposals have been brought forward for Rodinia to consider and as a result, the financial advisory services of CIBC have been terminated.
As Rodinia has no external source of revenue and has been unable to collect any of the $4.4 million owed to it by its working interest partner, it must depend upon the use of its remaining working capital to continue to carry on business. In order to reduce its ongoing expenses, Rodinia has reduced the compensation payable to its President and Chief Executive Officer to nil, has reduced the compensation payable to its Vice President Finance and Chief Financial Officer substantially and has terminated the services of several of its staff, including Ms. Susan Showers, Manager, Investor Relations. Rodinia's Board and senior management would like to thank Ms. Showers for her dedicated contribution to Rodinia and wish her the very best in her future endeavors.
Rodinia will continue to seek a transaction that will benefit its shareholders. However, as it has been unable to raise additional capital or complete a transaction through its strategic review process, Rodinia's ability to carry on as a going concern is now in serious doubt.
About Rodinia Oil Corp.
Rodinia is engaged in the exploration, acquisition and development of petroleum and natural gas assets in Australia's Officer Basin. Rodinia's assets include an 85% working interest in approximately 23,000,000 gross acres of exploratory lands in South Australia and Western Australia, along with 4,048 kilometres of seismic acquired and processed by Rodinia, the results of two wells and a 15,300 kilometre aeromagnetic/aerogravity survey, all relating to this exploratory acreage. Rodinia has no debt. Rodinia has offices in Calgary, Alberta and Adelaide, South Australia. Its common shares are listed for trading on the TSX Venture Exchange under the symbol "ROZ".
This press release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Rodinia, including, without limitation, statements pertaining to management's future plans. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Rodinia's disclosure documents on the SEDAR website at www.sedar.com. Any forward-looking statements are made as of the date of this release and, other than as required by applicable securities laws, Rodinia does not assume any obligation to update or revise them to reflect new events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services 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: Rodinia Oil Corp.
For further information:
Rodinia Oil Corp.
Suite 320, 715 5 Ave. SW
Calgary, Alberta, Canada T2P 2X6
Telephone: (403) 718-0366
Toll Free: (877) 822-7280
Fax: (403) 718-3888
Email: [email protected]