Crown Point to Proceed with Return of Capital
November 15 2019 - 12:45PM
Crown Point Energy Inc. (“
Crown Point” or the
“
Company”) is pleased to announce that its board
of directors has determined to proceed with the previously
announced special distribution to the holders (the
"
Shareholders") of the Company's common shares
(the "
Shares").
Crown Point will reduce the stated capital of
its Shares by US$0.185 per Share to permit the Company to pay a
special distribution to Shareholders in the amount of US$0.185 per
Share, for a total special distribution of approximately US$13.5
million (collectively, the "Return of Capital").
The Company currently anticipates that the Return of Capital will
be paid in December 2019, however the record date, ex-distribution
date and payment date for the Return of Capital will be announced
by the Company in due course.
In light of the Return of Capital, the Board has
determined not to declare a fourth quarter dividend on its Shares
and to suspend the Company's quarterly dividend payment until
further notice.
The distribution will be funded from the
Company's existing cash reserves, the majority of which was derived
from the sale by the Company in April 2019 of a 16.8251%
participating interest in the Rio Cullen, Las Violetas and La
Angostura hydrocarbon exploitation concessions located in the
Tierra del Fuego region of the Austral basin in southern
Argentina.
As at September 30, 2019, the Company had
working capital of approximately US$16 million. Following the
Return of Capital, the remaining working capital of the Company and
ongoing cash flows from operations are expected to be sufficient to
fund the needs of the Company's continuing business operations for
the foreseeable future.
Shareholder approval for the Return of Capital
was obtained by the Company at the special meeting of Shareholders
held on October 30, 2019. The Return of Capital remains subject to
any approvals required by the TSX Venture Exchange.
For further information regarding the Return of
Capital, including a summary of certain Canadian federal income tax
considerations, see the Company's press release dated September 17,
2019 and the Company's management information circular dated
September 30, 2019.
About Crown Point
CROWN POINT ENERGY INC. IS AN INTERNATIONAL OIL
AND GAS EXPLORATION AND DEVELOPMENT COMPANY HEADQUARTERED IN
CALGARY, CANADA, INCORPORATED IN CANADA, TRADING ON THE TSX VENTURE
EXCHANGE AND OPERATING IN SOUTH AMERICA. CROWN POINT’S EXPLORATION
AND DEVELOPMENT ACTIVITIES ARE FOCUSED IN TWO OF THE LARGEST
PRODUCING BASINS IN ARGENTINA, THE AUSTRAL BASIN IN THE PROVINCE OF
TIERRA DEL FUEGO AND THE NEUQUÉN BASIN IN THE PROVINCE OF MENDOZA.
CROWN POINT HAS A STRATEGY THAT FOCUSES ON ESTABLISHING A PORTFOLIO
OF PRODUCING PROPERTIES, PLUS PRODUCTION ENHANCEMENT AND
EXPLORATION OPPORTUNITIES TO PROVIDE A BASIS FOR FUTURE GROWTH.
Forward-looking Information: This document
contains forward-looking information. This information relates to
future events and the Company’s future performance. All information
and statements contained herein that are not clearly historical in
nature constitute forward-looking information. Such information
represents the Company’s internal projections, estimates,
expectations, beliefs, plans, objectives, assumptions, intentions
or statements about future events or performance. This information
involves known or unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information. Crown Point
believes that the expectations reflected in this forward-looking
information are reasonable; however, undue reliance should not be
placed on this forward-looking information, as there can be no
assurance that the plans, intentions or expectations upon which
they are based will occur. This press release contains
forward-looking information concerning, among other things, the
following: all details regarding the Company's proposed Return of
Capital to Shareholders, including the amount of the Return of
Capital and the timing thereof; and, under "About Crown Point", all
elements of the Company’s business strategy. The reader is
cautioned that such information, although considered reasonable by
the Company, may prove to be incorrect. Actual results achieved
during the forecast period will vary from the information provided
in this document as a result of numerous known and unknown risks
and uncertainties and other factors. A number of risks and other
factors could cause actual results to differ materially from those
expressed in the forward-looking information contained in this
document including, but not limited to, the possibility that the
Company does not obtain the requisite TSX Venture Exchange
approvals (if any) to proceed with the Return of Capital. With
respect to forward-looking information contained in this document,
the Company has made assumptions regarding various matters,
including the amount of future cash flows that the Company will
receive from its operations and the sufficiency of those cash flows
(together with working capital of the Company that is not returned
to Shareholders pursuant to the Return of Capital) to fund the
Company's ongoing operations. Management of the Company has
included the above summary of assumptions and risks related to
forward-looking information included in this document in order to
provide investors with a more complete perspective on the Company’s
future operations. Readers are cautioned that this information may
not be appropriate for other purposes. Readers are cautioned that
the foregoing lists of factors are not exhaustive. The
forward-looking information contained in this document are
expressly qualified by this cautionary statement. The
forward-looking information contained herein is made as of the date
of this document and the Company disclaims any intent or obligation
to update publicly any such forward-looking information, whether as
a result of new information, future events or results or otherwise,
other than as required by applicable Canadian securities laws.
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 news release.
For inquiries please contact:
Brian Moss
President & CEO
Ph: (403) 232-1150
Crown Point Energy Inc.
bmoss@crownpointenergy.com
Marisa Tormakh
Vice-President, Finance & CFO
Ph: (403) 232-1150
Crown Point Energy Inc.
mtormakh@crownpointenergy.com
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