Science & Technology
Science and Technology
Science and Technology
Wed, October 28, 2009 Transeuro Energy Corp.: Extension of Series A Debentures & Notice to Bondholders
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 28, 2009) - Transeuro Energy Corp. (TSX VENTURE:TSU)(OSLO:TSU) ("Transeuro" or the "Company") announces that the Company has negotiated an extension to the CDN$2 million, Series A, 15% debenture that matures on November 14th 2009. A summary of the new terms of the debenture are:
(i) The maturity date of the Debenture shall be extended to November 1st 2010.
(ii) The interest rate for the Debenture shall be increased from 15% to 18% per annum effective November 1, 2009.
(iii) The Debenture holders shall release 2,642,860 Eaglewood shares to the Company and the Company will effect a sale of such shares with an estimated sale proceed of CDN 3.1m at current market levels.
(iv) The TSX Venture Exchange has approved the extension of the warrants granted to the Debenture Holders through to November 1st 2010.
(v) The interest payment due in November 2009 and all future interest payments to the new maturity date shall be paid by the company directly to the holders of the Debentures within 10 days following the sale of the Eaglewood shares by the Company.
The 20 million warrants issued to the Bondholders include an acceleration clause should the share price trade at or above the exercise price of CAD$0.10 for 15 consecutive days. This 15 day period was triggered on September 21st 2009 and ended on October 9th 2009. The Company hereby officially notifies the warrant holders that they now have 30 days from the date of this announcement to exercise, or the warrants will expire at 5pm PST on November 27th 2009.
The Company has a number of potential solutions to raise funds to continue the advancement of the Company, including the following: sale of its holdings in Eaglewood Energy Inc; monetizing the value of certain back in rights in properties owned and operated by Eaglewood Energy Inc. and partners in Papa New Guinea; farming in new partners in the Ukraine now that the property licenses are extended and the prior partnership disputes are settled; renewed gas sales in Beaver River, Canada; recently announced gas sales in Ukraine; sale of equipment in Armenia and equity or debt placements. The Company has restructured and strengthened its capital base and is aggressively looking for new opportunities to increase shareholder value.
The Chairman of the Board, Mr Aage Thoen states, "the Board and Management continue with strong resolve to deliver on the recovery plan previously set in motion. The menu of solutions mentioned herein is currently considered in sum to be adequate to stabilize and to reposition the Company for further and sustainable growth".
Transeuro Energy Corp. is involved in the acquisition of petroleum and natural gas rights, the exploration for, and development and production of crude oil, condensate and natural gas. The Company's properties are located in Canada, Armenia, and Ukraine. In addition, the Company owns shares in Eaglewood Energy Inc. and holds a back-in option to their exploration licenses.
On behalf of the Board of Directors
Aage Thoen, Chairman
The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.
The TSX Venture Exchange and Oslo Bors have not reviewed, and do not accept responsibility for the adequacy or accuracy of the content of this news release.
