Quattro Engages Durham Capital as Financial Advisor and Provides Corporate Update
September 15 2016 - 6:36PM
Quattro Exploration and Production Ltd. (TSX-V:QXP)
("
Quattro" or the "
Company") is
pleased to announce the engagement of Durham Capital Canada
Corporation (“
Durham”) as its financial advisor to
assist with the Company’s pursuit and evaluation of various options
with respect to a proposed funding of up to $25 million in senior
or subordinated debt, supported by the remaining assets of the
Company upon the completion of its $24.5 million Divestiture Plan
initially announced on August 4, 2016.
Furthermore, as anticipated with the Company’s
expanded plan announced on August 11, 2016 to increase its
Divestiture plan to $30 million while under Court Protection, on
September 8 Quattro made an application to the Court of Queen’s
Bench of Alberta (the “Court”) seeking to transfer
its restructuring proceedings initially commenced on August 10,
2016 under the Bankruptcy and Insolvency Act (the “BIA
Proceedings’) to the Companies’ Creditors Arrangement Act
(“CCAA”).
The Court has granted the Company’s application
and issued an order under the CCAA (the “Initial
Order”) under which the Company will now be continuing its
divestiture and restructuring plan.
Quattro has also engaged NRG Divestitures Inc.
(“NRG”), a Calgary-based independent marketing firm to act as
advisor and agent for the divestiture and sale of certain of
Quattro’s assets. In addition, NRG will manage the solicitation of,
and act as an advisor on all other offers received for the
remaining assets deemed non-core by the Corporation.
“Quattro is encouraged by the number of
proposals and inquiries it has received to date for both the
divestiture of non-core assets and the financing of the development
of its Core Properties,” said Leonard B. Van Betuw, President and
CEO. “The combination of Durham as Financial Advisor dedicated to
the financing objectives of the Corporation and NRG as agent for
Quattro’s divestiture program is a source of growing confidence
that Quattro’s plan to date is quickly gaining momentum. With
the granting of the CCAA order, both the divestiture and financing
plans will be completed within the orderly confines of the
CCAA. Each mandate will have the opportunity to be executed
in an expedited fashion, incorporating the flexibility and
opportunities afforded to the Company under the Act. It is
Quattro’s objective to ensure that all Stakeholder concerns will
continue to be managed in an equitable manner.”
Quattro is also pleased to announce the closing
of its previously announced purchase of the 100% interest in the El
Cedro License, Block 6-2012 in Guatemala, consisting of 34,723
hectares in the South Peten Basin.
The final purchase price, including adjustments
for the acquisition is CDN $6,175,000, to be paid through the
issuance of 60,000 non-voting, Class C, series 3 Preferred Shares
at a deemed price of $100 per share (“Preferred
Shares”) and the assumption of approximately $175,000 in
liabilities related to current work in progress.
The Preferred Shares bear an annual yield of
$3.50 per share.
“In the short time that has passed since
embarking on creditor protection, Quattro has continued to be
extremely encouraged that the capabilities within the Company are
becoming more appreciated by both financiers and the industry at
large. This is reflected in the due diligence process that
has been conducted to date and the unsolicited inquiries from
industry that continue to be received by the Company. Through
the Company’s Divestiture and Capitalization plan that is underway,
the Company anticipates achieving the additional financial capacity
and revitalization necessary to continue to reward its shareholders
for supporting the Corporation’s targeted exploration and
production efforts in combination with the acquisitions and
consolidation that has been conducted over the past 5 years,” said
Mr. Van Betuw.
Quattro is also pleased to be a member of the
8020 Connect network, and invite all our shareholders to become
members with us. 8020 Connect (www.8020connect.com) is the
investment industry’s newest social network, developed to deliver
corporate information to shareholders, investment industry experts
and like-minded investors, while enabling these member groups to
interact with each other and with our corporate management
team.
Through the 8020 Connect Shareholder and
Investor Network, Quattro is able to communicate its corporate
message and update project advancements and financial information
to all shareholders and investors in a timely and effective
fashion. The 8020 Connect social media component provides
direct interaction with shareholders, allowing the Company to
answer questions and inquiries directly or in group
forums. The 8020 Connect network will also allow
Quattro to expand its audience exponentially to interested
investors and industry experts worldwide.
FOR FURTHER INFORMATION PLEASE CONTACT:
Leonard Van Betuw President and Chief Executive
OfficerOffice (403) 984-3917 Ext.102 Direct Line (587) 228-7070
leonard@qxp-petro.com
Or
Tianda Dranchuk Business Development
tianda.d@qxp-petro.com
www.qxp-petro.com
This release includes certain statements that
may be deemed “forward-looking statements”. All statements in this
release, other than statements of historical facts, that address
future production, reserve potential, exploration drilling,
exploitation activities and events or developments that the Company
expects are forward-looking statements. Although the Company
believes the expectations expressed in such forward looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward looking statements
include market prices, exploitation and exploration successes,
continued availability of capital and financing, and general
economic, market or business conditions. Investors are cautioned
that any such statements are not guarantees of future performance
and those actual results or developments may differ materially from
those projected in the forward-looking statements. For more
information on the Company, Investors should review the Company’s
registered filings which are available at www.sedar.com.
This news release shall not constitute an offer
to sell or the solicitation of any offer to buy, nor shall there be
any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful. The securities
offered have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent registration or applicable exemption
from the registration requirements of the U.S. Securities Act and
applicable state securities laws.
BOE presentation:
Barrel ("bbl") of oil equivalent ("boe") amounts
may be misleading particularly if used in isolation. All boe
conversions in this report are calculated using a conversion of six
thousand cubic feet of natural gas to one equivalent barrel of oil
(6 mcf=1 bbl) and is based on an energy conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the well head.
Trading in the securities of Quattro Exploration
and Production Ltd. should be considered highly speculative.
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.