Carbonics Capital Corporation Announces Acquisition of Westport Energy LLC
August 19 2010 - 1:40PM
Business Wire
Carbonics Capital Corporation (OTCBB: CICS) announced today that
its wholly-owned subsidiary, Westport Acquisition Inc., has
acquired 100% of the membership interest of Westport Energy LLC, an
exploration stage company engaged in the exploration for coalbed
methane in the Coos Bay region of Oregon. Westport currently holds
leases to approximately 104,000 acres of prospective coalbed
methane lands in the Coos Bay Basin.
In consideration for the acquisition, Carbonics issued a senior
secured convertible debenture in the principal amount of
$27,640,712 to New Earthshell Corporation, the former owner of
Westport Energy LLC. The debenture bears interest at the rate of 9%
per annum and has a maturity date of August 31, 2012.
In addition, Carbonics also issued to YA Global Investments,
L.P. a secured convertible debenture in the principal amount of
$650,000, which also bears interest at the rate of 9% per annum and
has a maturity date of August 31, 2012. The proceeds from this
debenture will be used by Carbonics for its short-term operating
needs.
At the closing, Carbonics’ current executive officers resigned
from their respective positions and Stephen J. Schoepfer was
appointed Chairman, Chief Executive Officer, Chief Financial
Officer and Secretary of Carbonics. In addition, Carbonics’ current
directors, Kevin Kreisler and Paul Miller, also submitted their
resignations, however such resignations shall not become effective
until 10 days after an applicable 14f-1 Information Statement
regarding the change in the board of directors has been mailed to
the shareholders of Carbonics.
The Company will be filing a Current Report on Form 8-K with
further details regarding the acquisition of Westport Energy LLC
and its related financing.
About Carbonics Capital Corporation
As a result of its recent acquisition of Westport Energy LLC,
Carbonics Capital Corporation is now an exploration stage company
engaged in the exploration for coalbed methane in the Coos Bay
region of Oregon. The Company’s wholly-owned subsidiary, Westport
Energy LLC, holds leases to approximately 104,000 acres of
prospective coalbed methane lands in the Coos Bay Basin. The
Company intends to change its name to “Westport Energy Holdings
Inc.” in order to better reflect the new focus of its business.
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the date of this press release. Accordingly, reference should be
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