NEWS Mart Initiates Review of Strategic Alternatives
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CALGARY, ALBERTA--(Marketwired - Feb. 20, 2015) - Mart Resources, Inc. (TSX:MMT) ("Mart" or the "Company") announces that its Board of Directors (the "Board") has initiated a process to identify, examine and consider strategic and financial alternatives available to the Company with the ultimate view of enhancing shareholder value and has established a Special Committee comprised of independent directors to oversee the process. Strategic and financial alternatives may include, but are not limited to, the sale of the Company, merger or other business combination, sale of all or a portion of the Company's assets or any combination thereof, and continued execution of its business plans, among all other alternatives.
The Board has determined that it is timely to review the Company's strategic direction in light of reduced commodity prices and its future capital requirements. In this regard, Mart's management is currently working with its existing Nigerian lender to restructure its debt facilities in order to provide more flexibility in funding the development of the Umusadege field.
It is Mart's current intention not to disclose developments with respect to the strategic review process until the Board has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. The Company will continue to provide monthly operational and quarterly financial updates. There is no assurance that the strategic review process will result in a transaction or, if a transaction is undertaken, what the terms or timing of such a transaction will be.
An additional mandate of the Special Committee of the Board is to investigate whether certain actions of Mr. Wade G. Cherwayko, the Company's Chief Executive Officer, complied with the Company's Code of Conduct and internal policies. Mr. Cherwayko's executive authority has been limited during the course of the investigation but he will continue to advise the Board with respect to matters involving the Company's Nigerian co-venturers and Nigerian lenders. The Special Committee does not intend to make any further public statement with respect to this matter until the investigation is complete.
Derrick Armstrong, an independent member of the Board and retired senior securities lawyer with over 30 years of legal experience, has been appointed as Chairman of the Board and will chair the Special Committee.
Additional information regarding Mart is available on the Company's website at www.martresources.com and under the Company's profile on SEDAR at www.sedar.com.