VANCOUVER, April 11, 2019 /CNW/ - CruzSur Energy Corp. (the
"Company" or "CruzSur" ) (TSXV: CZR) is pleased to
announce that it has arranged a non-brokered private placement of
secured convertible debentures for aggregate proceeds of
US$2,500,000, to enable the Company
to restructure its portfolio of assets and settle outstanding
liabilities. The lead investor in the financing is
Frank Giustra and other insiders are
expected to participate in the financing. If any potential placee
would upon conversion become a greater than 20% shareholder of the
Company, the Company will seek shareholder approval prior to the
conversion.
The debentures will mature five years from the date of issuance,
will bear interest at the rate of 10% per annum and will be secured
by a general security agreement on the assets of the Company.
Under the terms of the debentures, the lenders may, at any time
prior to the maturity date convert any or all of the principal
amount of the debentures into units of the Company at a conversion
price of $0.15 per unit. Each
unit will be comprised of one common share of the Company and one
share purchase warrant. Each warrant will entitle the holder
to purchase one common share of the Company at a price of
$0.15 for a period of five
years. At the option of the Company, accrued interest may be
paid in cash or converted into common shares of the Company at the
then market price of the Company's common shares, subject to TSX
Venture Exchange approval.
This financing is subject to TSX Venture Exchange approval.
About CruzSur Energy Corp.
CruzSur is investing in proven leadership and technology to
develop oil and natural gas fields it has acquired in areas
surrounding some of the key energy producing areas in Colombia and Argentina. With decades of proven experience
in Latin America and global energy
development, CruzSur's leadership is working with local partners
and service providers to deliver the energy for Latin America's future.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the completion
of the operations described herein, and other forward-looking
information includes but is not limited to information concerning
the intentions, plans and future actions of the parties to the
transactions described herein and the terms of such
transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's inability to
perform the proposed operations.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the planned operations and activities. The
Company has also assumed that no significant events will occur
outside of the Company's normal course of business. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
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.
SOURCE CruzSur Energy Corp.