CALGARY, AB / ACCESSWIRE / May 12, 2020 / Nextraction Energy Corp. (NEX:NE.H) (the "Company" or "Nextraction") advises that the directors of Nextraction, or affiliates of them (the "Vendors") have entered into an agreement with third parties (one of whom is a brother to a nominee director of the Company) (all herein referred to as the "Acquirors") to sell a portion of the shares held by the Vendors in the Company. Pursuant to the agreement entered into, at closing, the Acquirors will, through a private sale, acquire 8,280,169 (approximately 19.5% of the outstanding common shares) of Nextraction common shares (the "Share Purchase"). Closing of the Share Purchase is subject to certain conditions being met. In addition, certain creditors to the Company (including the current directors of Nextraction or affiliates of them) to which the Company is indebted in the principal amount of approximately $6,314,086, plus accruing interest (the "Debt") have granted to the Acquirors, or their affiliates, the option to acquire the Debt owed to them by Nextraction and any security interest issued by Nextraction in relation to the Debt. Further details of the Debt is contained in the Nextraction recently filed Audited Consolidated Financial Statements for the year ended December 31, 2019 and the Management Discussion and Analysis thereon. Pursuant to the terms of the Option Agreement to acquire the Debt, the option is exercisable from the date of the closing of the Share Purchase to June 1, 2022. Closing of the Share Purchase is anticipated to occur shortly after the conclusion of the Nextraction Shareholders Meeting scheduled to occur on May 14, 2020. An additional News Release will be issued upon closing of the Share Purchase.
As previously announced, the Company's Annual and Special Shareholders Meeting is occurring on May 14, 2020 at 10:00 AM at the offices of the Company located at 1150, 707 - 7th Avenue SW, Calgary, AB. Shareholders can listen to the meeting and ask any questions by calling 1.888.433.2192 and entering a participation code of 1910427. Shareholders will not be able to vote over the telephone and, as such, are urged to vote prior to the meeting through the forms sent to them with the Notice of Meeting.
For further information please contact:
John Zang, CEO
Telephone: 403 680 9264
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information in this news release may contain forward looking information. Statements containing forward looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
The forward-looking information contained in this news release is as of the date hereof and Nextraction does not undertake any obligation to update publicly or to revise any of the included forward looking statements contained herein, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities and Exchange Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
SOURCE: Nextraction Energy Corp.