CALGARY, ALBERTA–(Marketwired – May 16, 2016) – Bayshore Petroleum Corp. (“Bayshore” or the “Company”) (TSX VENTURE:BSH) announced on December 9, 2015, that it had entered into an arms-length Binding Letter of Intent (the “BLOI”) to merge with E-T Energy Ltd. (“ET”), a private Alberta corporation with oil sands leases in the Poplar Creek (Fort McMurray) area of Alberta. The Company updated this process in December 31, 2015, January 29, 2016, March 2, 2016, and April 26, 2016, news releases. Under the BLOI, Bayshore and ET (together the “Parties”) intended to raise capital and enter into a transaction pursuant to which the Parties would combine their businesses and operations and continue as Bayshore. The Parties conducted satisfactory due diligence and were to enter into a definitive agreement to complete the transaction.
Comprehensive discussions between the Parties and stakeholders during the past few months led to a decision by ET to amend its capital structure prior to any transaction. As a result, ET is seeking stakeholder approval to restructure and simplify the Poplar Creek asset ownership. When complete, Bayshore and ET would enter an agreement to invest in Poplar Creek and produce diesel, combining both Party’s technologies as was envisioned previously. The terms and structure of that investment will likely be significantly and materially different from the contemplated transaction. The Parties are therefore terminating the original BLOI of December 9, 2015. They shall await the completion of the current ET restructuring, and a further announcement will be made before June 17, 2016.
On behalf of the Board of Directors
BAYSHORE PETROLEUM CORP.
Peter Ho, President and CEO
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company in the United States. The Company’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.