CALGARY, May 16, 2016 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or the "Company") is providing a reminder that the rights issued by Sterling (the "Rights") pursuant to a rights offering announced on April 20, 2016 (the "Rights Offering") expire at not later than 5:00 p.m. (Eastern time)(the "Expiry Time") on May 19, 2016 (the "Expiry Date"). Rights which are not exercised by the Expiry Time on the Expiry Date will be void and have no value. The Rights are listed under the symbol SLG.RT. Trading of the Rights is expected to continue until noon (Eastern time) on May 19, 2016, at which time the Rights will be halted.
Each Right entitles the holder thereof to subscribe for 32.333333333 Common Shares at a subscription price of $0.015398 per common share ("Common Share") in the capital of Sterling (the "Subscription Price"). Holders of Rights wishing to exercise their Rights must forward a completed Rights certificate, together with payment in full of the Subscription Price for each Common Share subscribed for to Computershare Investor Services Inc. Shareholders who hold their Common Shares in a brokerage account or with a nominee should contact such broker or nominee in order to exercise their Rights.
If a holder elects not to exercise the Rights issued to that holder, or elects to sell or transfer those Rights, the holder's current percentage ownership in Sterling will be very significantly diluted. To the extent that not all Rights issued have been exercised, there will be a subsequent issue by Sterling of the Exchange Shares (as defined in and qualified by the final short form prospectus of Sterling dated April 20, 2016 (the "Prospectus")) to the holders of Sterling Resources (UK) Ltd.'s existing senior bonds (the "Bondholders"). It is anticipated, for instance, that if none of the Rights are exercised to acquire Common Shares pursuant to the Rights Offering, that the Bondholders would, following the Recapitalization (as defined and described in the Prospectus) own 97% of the Common Shares with shareholders who were entitled to participate in the Rights Offering owning the remaining 3% of the Common Shares in aggregate.
Further details concerning the Rights Offering and the procedures to be followed by holders are contained in the Prospectus available on www.sedar.com.
This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the Rights Offering has been qualified for distribution. The Rights and the Exchange Shares offered are not, and will not be, registered under the securities laws of the United States of America, nor any State thereof, and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the accuracy of this release.
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All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In particular, this news release contains forward-looking statements with respect to the closing of the Rights Offering, the future holdings of Common Shares following the Recapitalization, the future trading halt of the Rights on the TSXV and the expiry of the Rights on the Expiry Date.
These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.
Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the news release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.
SOURCE Sterling Resources Ltd.
For further information: For further information: visit www.sterling-resources.com or contact: Jacob Ulrich, Chief Executive Officer, Phone: +1 (403) 237-9256, [email protected]; David Blewden, Chief Financial Officer, Phone: +1 (403) 237-9256, [email protected]; George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, [email protected]