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petrorio ANNOUNCES NEW share capital increase due to debentures conversion
Rio de Janeiro, November 19th, 2015 - Petro Rio S.A. ("Company" or "PetroRio") (BM&FBOVESPA: PRIO3, TSX-V: PRJ), informs that its Board of Directors, in a meeting held today, ratified the issuance of 1,091,634 common shares as result of the conversion of 85,989 Debentures issued within the 1st Private Issuance of Debentures Convertible into Common Shares, in a Single Series, of a Subordinated Type, of PetroRio ("Debentures"), and the consequent endorsement of the increase in the Company's share capital to R$ 3,400,674,492.74, which is now composed of 65,149,403 common shares.
The Debentures conversion period into common shares, at the sole discretion of the debenture holders, began on October 24th, 2015 and shall extent up to the Debentures maturity date (exclusive).
Up to the present date, the sum of all Debenture conversion notifications already received by the Company represents approximately 62% of the total Debentures issued in October 2014.
Lastly, the Company emphasizes that the shareholders on October 24th, 2014 were granted the right of preference to subscribe the Debentures. Furthermore, according to the Indenture of Issuance, all shares created as a result of the Debentures conversion shall be subjected to trading and transfer restrictions for a period of 12 (twelve) months from the date of conversion, being the holders obliged not to offer, sell, agree to sell, lend, rent or grant put or call options on these shares, as well as refrain from entering into any swap, hedge, short sale or other operation that may transfer, in whole or in part, any economic or political benefits arising from the ownership of such shares.