Cons Petroquin settles debt with shares
2004-05-07 15:48 ET - News Release
Mr. Arthur Gordon-Tydd reports
SALE OF SHARE POSITION BY PRINCPALS AND DEBT SETTLEMENT
Consolidated Petroquin Resources' president, Arthur Gordon-Tydd, along with Henry Hollett, Jerry Wade and Michael Bradely, have entered in to an agreement with Peng Wang, of Beijing, China, to sell 3.15 million common shares, for a price of 6.98 cents per share, for a total of $220,000. The principals of the company hold approximately 65 percent of this debt.
The transaction requires, as a condition of completion, that company creditors accept payment pro rata of $280,000 to settle the total company debt of $1.4-million so that the company has no outstanding liabilities when the transaction closes. Mr. Wang has also agreed with the company to settle all of this debt for 8.8 million shares of Consolidated Petroquin at a deemed price of 15.87 cents per share.
The transaction also requires, as a condition of completion, that Mr. Wang place $220,000 in trust forthwith, which funds have not yet been received; place an additional $280,000 in trust within four weeks; and place funds, as required and agreed upon, forthwith in to the company bank account, a partial amount which has been received.
The transaction requires the approval of company shareholders at the next annual and extraordinary general meeting to be held on June 25, 2004, on the change of control of the company, and regulatory approval.