CALGARY, ALBERTA--(Marketwired - July 12, 2013) - Atikwa Resources Inc. (News - Market indicators) ("Atikwa" or the "Company") announces that it has been granted an order by the Court of Queen's Bench of Alberta (the "Order") extending the time in which it is permitted to hold its annual and special meeting of shareholders (the "AGM") to a date no later than August 31, 2013. The Company had previously called its AGM for July 23, 2013 and has not yet set a new date for the AGM.
Atikwa sought the extension in part due to the impact of the state of emergency in Calgary on its preparations for the meeting. In addition, Atikwa continues to negotiate with interested parties in an effort to incorporate a strategic transaction into the AGM meeting agenda.
In order to allow Atikwa to be in a position to be able to raise capital under the rules of the TSX Venture Exchange, the Company held a special meeting of shareholders of Atikwa on June 14, 2013 (the "Special Meeting") to consider the consolidation of Atikwa's common shares on a basis to be determined at a later date by the board of directors of the Company. The proposed consolidation was not approved by the requisite majority (being 2/3rds of the votes cast) of Atikwa Shareholders at the Special Meeting. Management continues to diligently work towards raising additional funds for operations as well as placing a definitive transaction before shareholders at the Company's rescheduled AGM.
In the meantime, Atikwa intends to arrange a non-brokered private placement financing (the "Private Placement") of up to 50,000,000 common shares at a price of $0.01 per Common Share to raise gross proceeds of up to $500,000. The pricing of the Private Placement is in reliance on the temporary relief measures implemented by the TSX Venture Exchange (the "Exchange"). Accordingly the Private Placement requires approval from the Exchange in accordance with the temporary relief criteria set out in the Exchange Bulletin of April 12, 2013 with respect to the extension and modification of temporary relief from certain pricing requirements (the "Temporary Relief Measures").
The Common Shares issued under the Private Placement will be subject to resale restrictions under applicable securities legislation. Proceeds of the Private Placement will be used for general corporate purposes. The Private Placement is subject to a number of conditions including receipt of all necessary corporate and regulatory approvals, including Exchange approval under the Temporary Relief Measures.
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.
This news release contains forward‐looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Factors such as regulatory approvals and other related and external factors may affect the forward-looking statements made in this news release. Forward‐looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward‐looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future. Although the Company believes that the expectations represented in such forward‐looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements and you should not unduly rely on forward‐looking statements. The forward‐looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
