Zedcor Energy Inc. Announces Financing Extension
Calgary, Alberta--(Newsfile Corp. - March 26, 2019) - Zedcor Energy Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to announce that effective March 25, 2019, it has amended the Amended and Restated Loan and Security Agreement (the "Agreement") with Maynbridge Capital Inc. to extend the maturity date of the Agreement to March 25, 2020 in the principal amount of $14,314,250. The current loan amount reflects a repayment of debt since September 28, 2018 of $1,623,500 funded through the sale of under-utilized assets. The renewed Agreement continues to bear interest at 12.75%, has an extension fee of up to 4%, and will be serviced by twelve months of interest only payments. In addition, the Company amended its Warrant Agreement with Maynbridge to decrease the exercise price to $0.145 per share from $0.20 per share and to extend the expiry date of the warrants by twelve months to January 21, 2022. Pursuant to the Agreement, and in connection with the foregoing extension of the maturity date, the Company also issued to Maynbridge an additional 2,068 warrants to purchase common shares at an exercise price of $0.145 per share expiring January 21, 2022.
Dean Swanberg, Interim CEO, stated, "The financing extension announced today allows the Company to continue to focus on strengthening its operational performance and bottom line results. At the same time, the Company remains committed to reducing debt through positive cash flows and selling under-utilized assets."
Forward-Looking Statements and Information
Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, Zedcor's plans to continue to market and sell under-utilized assets and to use the proceeds to pay down debt. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements because the Company can give no assurance that such statements will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. Although management believes these assumptions are reasonable, there can be no assurance that they will be proved to be correct, and actual results will differ materially from those anticipated. For this purpose, any statements herein that are not statements of historical fact may be deemed to be forward-looking statements. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless it is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.
About Zedcor Energy Inc.
Zedcor Energy Inc. is a Canadian public corporation and parent company to Zedcor Energy Services Corp. ("Zedcor Corp."). Zedcor Corp. is engaged in the rental of surface equipment and accommodations, and providing security and surveillance services in Western Canada. The Company trades on the TSX Venture Exchange under the symbol "ZDC".
For further information contact:
Chief Financial Officer
P: (403) 930 - 5435
E: [email protected]
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