CALGARY, ALBERTA–(Marketwired – July 22, 2016) – On July 21, 2016, Kasten Energy Inc. (“Kasten“) acquired 70,000,000 common shares (“Common Shares“) of PetroFrontier Corp. (the “Issuer“) pursuant to a transaction whereby, among other things, the Issuer acquired Kasten’s resource assets in the Cold Lake area of Alberta in exchange for Common Shares, cash consideration and a convertible debenture of the Issuer (the “Debenture“) in the amount of $3,000,000 (the “Transaction“). The price per security was $0.157 per share for total consideration of $10,990,000.
Immediately prior to the acquisition, Kasten did not hold, directly and indirectly, any Common Shares of the Corporation. Pursuant to the Transaction, Kasten holds directly, 70,000,000 Common Shares representing 46.79% of the issued and outstanding Common Shares of the Issuer (89,108,280 Common Shares representing 52.82% of the outstanding Common Shares assuming conversion of the Debenture).
Kasten acquired the Common Shares as consideration for the sale of certain assets to the Issuer and Kasten may, in the future, increase or decrease its ownership of securities of the Issuer, directly or indirectly, from time to time depending upon, among other things, the business and prospects of Kasten and the future market conditions.
A report respecting this acquisition will be filed with the applicable securities commissions using the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) and will be available for viewing on the Issuer’s profile at www.sedar.com.
For additional information regarding this news release please contact Robert J. Iverach, Q.C., Chief Executive Officer of the Issuer via email at biverach@mac.com.