Calgary, Alberta (FSCwire) – Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Corporation", the "Company" or "Emerald Bay") is pleased to announce that the Company has entered into an agreement to settle all amounts owing in connection with two separate loan/credit arrangements previously provided to the Corporation by Hillcrest Investments Ltd., a company controlled by Clarence Wagenaar (who currently controls, directly and indirectly, 11.93% of the outstanding common shares of the Corporation) via the issuance of an aggregate of 18,493,178 common shares of the Corporation at a price of $0.05 per share. The aggregate debt amounts to be settled is equal to $924,658.90, being the aggregate balance of the principal amounts owing on the two separate loan/credit arrangements between the parties plus all applicable interest. Upon closing of the shares for debt settlement, Mr. Wagenaar will control, directly and indirectly, an aggregate 51,574,198 common shares of the Corporation, or 18.6% of the outstanding common shares of the Corporation.
Closing of the foregoing shares for debt transaction is subject to approval by the TSX Venture Exchange. All of the foregoing common shares will, upon issuance, be subject to a statutory four-month hold period in accordance with applicable securities laws.
The settlement of the debt with Mr. Wagenaar’s company may be considered a "Related Party Transactions" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, however the Corporation will rely upon available exemptions from the minority shareholder approval and valuation requirements set forth in that Instrument.
About Emerald Bay
Emerald Bay Energy Inc. (EBY) is an energy company with oil producing properties in southwest Texas as well as non operated oil and natural gas interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadeloupe, Texas, where the Company currently now owns a 50.00% working interest in those projects. The Company also owns 75% of Production Resources Inc., a South Texas oil company.
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For further information, please contact:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: Emerald Bay Energy Inc. (TSX Venture:EBY, OTC Bulletin Board:EMBYF)
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