CALGARY, Alberta, Sept. 24, 2018 (GLOBE NEWSWIRE) — Tanager Energy Inc. (“Tanager” or the “Corporation”) (TSX-V: TAN) announced today that its wholly-owned US subsidiary, Tanager Energy USA, Inc. (“Tanager USA”), has received a loan from Energy Reserve Capital, LLC (“Energy Reserve”) in the amount of US$400,000, subject to TSX Venture Exchange final approval. In addition, Tanager USA has converted the outstanding obligations owing to Paleo Oil Company, LLC (“Paleo”) in the amount of US$1,745,591 into a promissory note, subject to TSX Venture Exchange final approval.
Each of the loans are guaranteed by Tanager, shall be repaid on demand, provided that if no demand is made, the loans are due on September 1, 2020, bear interest at a rate of 0.5% above the Wall Street Journal prime rate, and are secured against all of Tanager USA’s oil and gas properties in Texas.
Roger S. Braugh and Christopher J. Pettit, directors of Tanager, are a shareholder and trustee of a shareholder, respectively, of Paleo. In addition, Energy Reserve is a wholly-owned subsidiary of Paleo. Tanager has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available in connection with the loans (Formal Valuation – Issuer Not Listed on Specified Markets; Minority Approval – Fair Market Value Not More Than 25% of Market Capitalization).