CALGARY, July 26, 2013 /CNW/ - ArPetrol Ltd. ("ArPetrol" or the "Company") (TSXV: RPT) announces that, at the annual and special meeting of shareholders of the Company ("Shareholders") to be held on August 21, 2013 (the "Meeting"), Shareholders will be asked to consider and approve a potential consolidation of the issued and outstanding common shares of the Company ("Common Shares") on a basis of up to 50 pre-consolidated shares for each post-consolidation share, or such lesser ratio that the board of directors of the Company (the "Board"), in their sole discretion, may determine to be appropriate (the "Consolidation").
Although approval for a potential Consolidation is being sought at the Meeting, such a Consolidation would only become effective at a date in the future if the Board considers it to be in the best interests of the Company to implement such a Consolidation. The Company believes that a future Consolidation may enhance the marketability of the Common Shares as an investment and may facilitate future financings, as the Company is subject to the TSX Venture Exchange ("TSXV") minimum pricing rules for financings. The special resolution will authorize the Board to elect not to proceed with the Consolidation if the Consolidation is not deemed to be in the best interests of the Company. The Consolidation is subject to shareholder approval at the upcoming Meeting and to TSXV acceptance.
Assuming a consolidation ratio of 50 pre-Consolidation Common Shares for each post-Consolidation Common Share (the Board being permitted to consolidate on a lesser ratio in their sole discretion), the Consolidation would result in the 572,536,704 pre-Consolidation Common Shares that are currently outstanding being reduced to approximately 11,450,734 post-Consolidation Common Shares.
The name of the Company will not be changed in conjunction with the Consolidation.
About ArPetrol Ltd.
ArPetrol is a Calgary-based publicly traded company engaged in oil and natural gas exploration, development and production and third-party natural gas processing in Argentina, where it owns and operates a gas processing facility with capacity of 85 million cubic feet (MMcf) per day. The Company's common shares are listed on the TSXV under the symbol "RPT".
Forward-Looking Information
This news release contains certain forward‐looking statements relating, but not limited, to the Consolidation, the marketability of Common Shares post-Consolidation and the ability to secure financings. Forward‐looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities not to place undue reliance on forward‐looking information as, by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company. Forward-looking information is based on management's current expectations and assumptions regarding the Consolidation, the marketability of Common Shares post-Consolidation, the Consolidation's facilitation of a financing, and the Company's ability to secure a future financing. Although the Company believes the expectations and assumptions reflected in such forward‐looking information are reasonable, they may prove to be incorrect.
Forward‐looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to risks associated with uncertainty regarding shareholder approval of the Consolidation, the marketability of Common Shares post-Consolidation and the ability to secure financings. The forward‐looking information included herein is expressly qualified in its entirety by this cautionary statement. The forward‐looking information included herein is made as of the date hereof and the Company assumes no obligation to update or revise any forward‐looking information to reflect new events or circumstances, except as required by law.
Additional information relating to the Company is also available on SEDAR at www.sedar.com.
ArPetrol's head office address is 700, 815 8 Avenue S.W., Calgary, AB T2P 3P2
Neither the TSXV nor its Regulation Services Provider (as defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ArPetrol Ltd.
For further information:
Tim Thomas, President and Chief Executive Officer
t.thomas@arpetrol.com
Or
Ian Habke, Chief Financial Officer
i.habke@arpetrol.com
ArPetrol Ltd.
Main Telephone: 403-263-6738
