CALGARY, Oct. 10, 2014 /CNW/ – Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that the company’s working capital has been augmented by a US$2.2 million (approximately C$2.4 million) secured bridge loan provided by founder and Executive Co-Chairman, Robert Friedland.
In addition, concurrent with the advancing of the bridge loan, Mr. Friedland also has resigned as the Executive Co-Chairman and as a director of the company. Mr. Friedland remains the largest shareholder of the company, owning 16.78% of the issued and outstanding common shares, as well as remaining a holder of US$7.0 million principal amount of the company’s outstanding convertible debentures.
Mr. Friedland commented, “As the company’s largest shareholder, a holder of its unsecured convertible debt and now as a secured lender, it is appropriate for me to step aside from my company roles to avoid any potential for conflicts of interest. However, as this loan demonstrates, I continue to remain highly supportive of Ivanhoe Energy and its management team.”
Mr. Friedland said he is open to the possibility of rejoining the board at some time in the future, once the potential for conflicts of interest has been removed.
The bridge loan bears interest at the rate of 10% per annum, with a maturity of six months from the date of advance. Mr. Friedland’s loan is secured by a first charge against the assets of the company, with the exception of all assets and subsidiaries of Ivanhoe Energy Latin America.
Ivanhoe Energy is an independent international heavy oil exploration and development company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL®). Core operations are in Canada, the United States and Ecuador, with business development opportunities worldwide. Ivanhoe Energy trades on the Toronto Stock Exchange with the ticker symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN. For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.
SOURCE Ivanhoe Energy Inc.
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