CALGARY, Alberta, July 02, 2017 (GLOBE NEWSWIRE) — Butte Energy Inc. (the “Corporation”) (TSXV:BEN.H) announces it has entered into an agreement regarding the sale of its Chigwell properties to RKSmith Energy Corp. for $35,000 (the “Transaction”). The Transaction, if completed, will constitute the final disposition of all the Corporation’s remaining assets and no finders fees will be paid in respect of the Transaction. The closing of the Transaction is contingent upon customary closing conditions, including the Corporation obtaining the applicable regulatory approvals and approval by the Corporation’s shareholders of for the sale of all or substantially all of the assets of the Corporation.
The Corporation intends to proceed with the Transaction upon receipt of all required regulatory and shareholder approvals. The Corporation intends to use the proceeds from the Transaction for the settlement of obligations and after the payment of its liabilities the Corporation anticipates that there will be no residual for a distribution to shareholders. Upon receipt of the requisite approvals the Corporation plans to cease its operations, delist its common shares from the TSX Venture Exchange and wind itself up.
The Corporation is preparing a management information circular (the “Circular”) for provision to shareholders in respect of an annual and special meeting of shareholders (the “Meeting”) to seek approval for: (i) the Transaction; (ii) the wind up and dissolution of the Corporation; and (iii) annual meeting matters, including the election of the Board and the appointment of an auditor. It is currently anticipated that the Meeting will be held on August 1, 2017.
Information Regarding the Corporation
The Corporation was previously engaged in the exploration for and development and production of oil and natural gas reserves in Western Canada.