VANCOUVER, April 11, 2019 /CNW/ – CruzSur Energy Corp. (the “Company” or “CruzSur” ) (TSXV: CZR) is pleased to announce that it has arranged a non-brokered private placement of secured convertible debentures for aggregate proceeds of US$2,500,000, to enable the Company to restructure its portfolio of assets and settle outstanding liabilities. The lead investor in the financing is Frank Giustra and other insiders are expected to participate in the financing. If any potential placee would upon conversion become a greater than 20% shareholder of the Company, the Company will seek shareholder approval prior to the conversion.
The debentures will mature five years from the date of issuance, will bear interest at the rate of 10% per annum and will be secured by a general security agreement on the assets of the Company. Under the terms of the debentures, the lenders may, at any time prior to the maturity date convert any or all of the principal amount of the debentures into units of the Company at a conversion price of $0.15 per unit. Each unit will be comprised of one common share of the Company and one share purchase warrant. Each warrant will entitle the holder to purchase one common share of the Company at a price of $0.15 for a period of five years. At the option of the Company, accrued interest may be paid in cash or converted into common shares of the Company at the then market price of the Company’s common shares, subject to TSX Venture Exchange approval.
This financing is subject to TSX Venture Exchange approval.
About CruzSur Energy Corp.
CruzSur is investing in proven leadership and technology to develop oil and natural gas fields it has acquired in areas surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience in Latin America and global energy development, CruzSur’s leadership is working with local partners and service providers to deliver the energy for Latin America’s future.
Except for the statements of historical fact, this news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. The information in this news release about the completion of the operations described herein, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms of such transaction.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks related to the Company’s inability to perform the proposed operations.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company’s ability to complete the planned operations and activities. The Company has also assumed that no significant events will occur outside of the Company’s normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CruzSur Energy Corp.
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