CALGARY, Alberta, Sept. 15, 2016 (GLOBE NEWSWIRE) — Quattro Exploration and Production Ltd. (TSX-V:QXP) (“Quattro” or the “Company“) is pleased to announce the engagement of Durham Capital Canada Corporation (“Durham”) as its financial advisor to assist with the Company’s pursuit and evaluation of various options with respect to a proposed funding of up to $25 million in senior or subordinated debt, supported by the remaining assets of the Company upon the completion of its $24.5 million Divestiture Plan initially announced on August 4, 2016.
Furthermore, as anticipated with the Company’s expanded plan announced on August 11, 2016 to increase its Divestiture plan to $30 million while under Court Protection, on September 8 Quattro made an application to the Court of Queen’s Bench of Alberta (the “Court”) seeking to transfer its restructuring proceedings initially commenced on August 10, 2016 under the Bankruptcy and Insolvency Act (the “BIA Proceedings’) to the Companies’ Creditors Arrangement Act (“CCAA”).
The Court has granted the Company’s application and issued an order under the CCAA (the “Initial Order”) under which the Company will now be continuing its divestiture and restructuring plan.
Quattro has also engaged NRG Divestitures Inc. (“NRG”), a Calgary-based independent marketing firm to act as advisor and agent for the divestiture and sale of certain of Quattro’s assets. In addition, NRG will manage the solicitation of, and act as an advisor on all other offers received for the remaining assets deemed non-core by the Corporation.
“Quattro is encouraged by the number of proposals and inquiries it has received to date for both the divestiture of non-core assets and the financing of the development of its Core Properties,” said Leonard B. Van Betuw, President and CEO. “The combination of Durham as Financial Advisor dedicated to the financing objectives of the Corporation and NRG as agent for Quattro’s divestiture program is a source of growing confidence that Quattro’s plan to date is quickly gaining momentum. With the granting of the CCAA order, both the divestiture and financing plans will be completed within the orderly confines of the CCAA. Each mandate will have the opportunity to be executed in an expedited fashion, incorporating the flexibility and opportunities afforded to the Company under the Act. It is Quattro’s objective to ensure that all Stakeholder concerns will continue to be managed in an equitable manner.”
Quattro is also pleased to announce the closing of its previously announced purchase of the 100% interest in the El Cedro License, Block 6-2012 in Guatemala, consisting of 34,723 hectares in the South Peten Basin.
The final purchase price, including adjustments for the acquisition is CDN $6,175,000, to be paid through the issuance of 60,000 non-voting, Class C, series 3 Preferred Shares at a deemed price of $100 per share (“Preferred Shares”) and the assumption of approximately $175,000 in liabilities related to current work in progress.
The Preferred Shares bear an annual yield of $3.50 per share.
“In the short time that has passed since embarking on creditor protection, Quattro has continued to be extremely encouraged that the capabilities within the Company are becoming more appreciated by both financiers and the industry at large. This is reflected in the due diligence process that has been conducted to date and the unsolicited inquiries from industry that continue to be received by the Company. Through the Company’s Divestiture and Capitalization plan that is underway, the Company anticipates achieving the additional financial capacity and revitalization necessary to continue to reward its shareholders for supporting the Corporation’s targeted exploration and production efforts in combination with the acquisitions and consolidation that has been conducted over the past 5 years,” said Mr. Van Betuw.
Quattro is also pleased to be a member of the 8020 Connect network, and invite all our shareholders to become members with us. 8020 Connect (www.8020connect.com) is the investment industry’s newest social network, developed to deliver corporate information to shareholders, investment industry experts and like-minded investors, while enabling these member groups to interact with each other and with our corporate management team.
Through the 8020 Connect Shareholder and Investor Network, Quattro is able to communicate its corporate message and update project advancements and financial information to all shareholders and investors in a timely and effective fashion. The 8020 Connect social media component provides direct interaction with shareholders, allowing the Company to answer questions and inquiries directly or in group forums. The 8020 Connect network will also allow Quattro to expand its audience exponentially to interested investors and industry experts worldwide.