Vancouver, BC / TheNewswire / June 22, 2015 - Petrichor Energy Inc. (FSE: YQN; TSX-V: PTP) (the Company or PTP) announces that it has received a Term Sheet from Cytron Financial Trust of Geneva, Switzerland for a proposed debt financing to raise up to US$20,000,000 through the issuance of convertible debentures (the "Debentures"), subject to acceptance by the TSX Venture Exchange (the "Exchange").
The Debentures will be transferable (subject to applicable securities laws), and bear interest at 8.5% per annum, payable quarterly in arrears, with interest accruing from the date the Debentures are issued, maturing five (5) years from the date of issuance (the "Maturity Date").
Subscribers will have the right to convert the principal amount and any accrued but unpaid interest thereon, into common shares of the Company (the "Conversion Shares") for a period of three (3) years from the date of issuance of the Debentures. With respect to the outstanding principal amount of the Debentures, the conversion price will be at a 25% discount to the market price of the Company's shares, determined by a 20-day average trading price immediately prior to the date of request to convert, subject to a minimum conversion price of Cdn$0.40.
The Debentures may be pre-paid at any time by the Company prior to the Maturity Date with a penalty equal to 4 months interest. Any outstanding principal amount and accrued interest will be due and payable on the Maturity Date.
The Debentures will be secured by a first fixed charge on the Company's interests in all of its oil and gas wells in Texas, as well as any additional assets acquired utilizing the net proceeds of this financing, which will be registered in favor of the subscribers under this financing on a pari passu basis.
In the event that prior to the Maturity Date there is a change of control, the Company shall be required to offer to purchase all of the outstanding Debentures at a purchase price equal to 100% of the principal amount of the Debentures, plus accrued and unpaid interest, if any, to, but not including, the purchase date.
Proceeds will be used for drilling and advancing development of oil and gas wells on the Company's Marble Falls Prospect, for the consolidation of existing debt, towards the strategic acquisition of existing production in the Company's core area in North Texas, and for general working capital.
On behalf of the Board of Directors
SIGNED: "Joe DeVries"
Joe DeVries, CEO
Contact: (604) 336-8615
For further information on PTP please visit our website at www.petrichorenergy.com
The Company's public documents may be accessed at www.sedar.com
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
Neither the 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 release.
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
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