CALGARY, July 26, 2013 /CNW/ - ArPetrol Ltd.
("ArPetrol" or the "Company") (TSXV: RPT) announces
that, at the annual and special meeting of shareholders of the
Company ("Shareholders") to be held on August 21, 2013 (the "Meeting"),
Shareholders will be asked to consider and approve a potential
consolidation of the issued and outstanding common shares of the
Company ("Common Shares") on a basis of up to 50
pre-consolidated shares for each post-consolidation share, or such
lesser ratio that the board of directors of the Company (the
"Board"), in their sole discretion, may determine to be
appropriate (the "Consolidation").
Although approval for a potential Consolidation
is being sought at the Meeting, such a Consolidation would only
become effective at a date in the future if the Board considers it
to be in the best interests of the Company to implement such a
Consolidation. The Company believes that a future
Consolidation may enhance the marketability of the Common Shares as
an investment and may facilitate future financings, as the Company
is subject to the TSX Venture Exchange ("TSXV") minimum
pricing rules for financings. The special resolution will
authorize the Board to elect not to proceed with the Consolidation
if the Consolidation is not deemed to be in the best interests of
the Company. The Consolidation is subject to shareholder
approval at the upcoming Meeting and to TSXV acceptance.
Assuming a consolidation ratio of 50
pre-Consolidation Common Shares for each post-Consolidation Common
Share (the Board being permitted to consolidate on a lesser ratio
in their sole discretion), the Consolidation would result in the
572,536,704 pre-Consolidation Common Shares that are currently
outstanding being reduced to approximately 11,450,734
post-Consolidation Common Shares.
The name of the Company will not be changed in
conjunction with the Consolidation.
About ArPetrol Ltd.
ArPetrol is a Calgary-based publicly traded company engaged
in oil and natural gas exploration, development and production and
third-party natural gas processing in Argentina, where it owns and operates a gas
processing facility with capacity of 85 million cubic feet (MMcf)
per day. The Company's common shares are listed on the TSXV under
the symbol "RPT".
Forward-Looking Information
This news release contains certain
forward‐looking statements relating, but not limited, to the
Consolidation, the marketability of Common Shares
post-Consolidation and the ability to secure financings.
Forward‐looking information typically contains statements with
words such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", "project", or similar words suggesting
future outcomes. The Company cautions readers and prospective
investors in the Company's securities not to place undue reliance
on forward‐looking information as, by its nature, it is based on
current expectations regarding future events that involve a number
of assumptions, inherent risks and uncertainties, which could cause
actual results to differ materially from those anticipated by the
Company. Forward-looking information is based on management's
current expectations and assumptions regarding the Consolidation,
the marketability of Common Shares post-Consolidation, the
Consolidation's facilitation of a financing, and the Company's
ability to secure a future financing. Although the Company believes
the expectations and assumptions reflected in such forward‐looking
information are reasonable, they may prove to be incorrect.
Forward‐looking information involves significant
known and unknown risks and uncertainties. A number of factors
could cause actual results to differ materially from those
anticipated by the Company, including but not limited to risks
associated with uncertainty regarding shareholder approval of the
Consolidation, the marketability of Common Shares
post-Consolidation and the ability to secure financings. The
forward‐looking information included herein is expressly qualified
in its entirety by this cautionary statement. The forward‐looking
information included herein is made as of the date hereof and the
Company assumes no obligation to update or revise any
forward‐looking information to reflect new events or circumstances,
except as required by law.
Additional information relating to the Company
is also available on SEDAR at www.sedar.com.
ArPetrol's head office address is 700, 815 8
Avenue S.W., Calgary, AB T2P
3P2
Neither the TSXV nor its Regulation
Services Provider (as defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE ArPetrol Ltd.