Transeuro files short-form prospectus for rights i 2011-09-21 06:43 ET - News ReleaseMr. Aage Thoen reportsRIGHTS ISSUE UPDATETranseuro Energy Corp. has registered a preliminary short-form prospectus with the British Columbia, Alberta and Ontario securities commissions in Canada with respect to its previously announced rights issue. The rights offering will be conducted in both Canada and Norway, and the company anticipates submitting the respective final version of each prospectus within the next three weeks. The company anticipates that, dependent on the review process with the Canadian securities commissions, the rights issue subscription period will likely commence mid-October and end in early November. Further details regarding the exact dates of the rights issue subscription period will be disclosed as soon as they are determined.During the rights issue, shareholders will be given the right to purchase 1.8175 shares at nine cents for each share held on the trading day prior to the ex rights date (around mid-October). Shareholders can also elect to subscribe for additional rights to take a pro rata allocation of any rights not taken by other shareholders. Questerre Energy Corp. has committed to provide $2-million to the company at this price of nine cents.Example For a shareholder owning 10,000 shares, for each one share there is a right to purchase 1.8175 shares at nine cents. So for 18,175 shares there would be a total cost of $1,636.00. The timeline to use the right to purchase the shares is available during the subscription period and will expire once the subscription period is complete. Any shareholders who do not want to buy the new shares can sell their rights as they will be tradeable (listed) both at the Oslo Exchange and the TSX Venture Exchange during the subscription period (until three days prior to the last day of the subscription period). These rights are free to shareholders up to the last trading date prior to the ex rights date, so if the rights are sold this is a clear profit to shareholders.A standby guarantee consortium has been established to ensure that a minimum of $8-million will be available to the company. The consortium mainly consists of larger Norwegian institutions, as well as two private investors, including the chairman of the board of Transeuro. The guarantee will be utilized only if the amount raised during the subscription period, after shareholders exercise their rights and after the allocation of additional subscription rights to interested shareholders, is below the minimum of $8-million. The guarantee is at the same price of nine cents per share. If the minimum amount is raised (either by shareholders through their rights or additional rights or investors who buy the rights during the subscription period and subscribe for shares), then the guarantors will not receive any shares. If the guarantors are required to purchase shares, the company anticipates that the guarantors will continue to support the company thereafter.The maximum rights issue of $15-million will give the shareholders the right to subscribe for a total of 166,668,866 common shares. The shares subscribed in the rights issue will be registered, added to existing outstanding shares and the number of outstanding shares after the right issue will be raised to 258,371,131. If the maximum amount is raised the company anticipates conducting a winter program at the Beaver River field in Canada.Following completion of the rights issue the company intends to repay the majority of trade debt and commence operations to hydraulically fracture the main target reservoirs in the Karlavskoye-101 well in Ukraine.We seek Safe Harbor.