Baloney
Alberta Oilsands Inc. continues to actively evaluate opportunities in connection with its strategic review process. The evaluation of such opportunities are based on certain criteria that includes, but is not limited to: the quality of proposed management and board members, the valuation of a party's assets, and the proposed go-forward business plan to further enhance shareholder value. As part of the strategic review process, AOS has been examining a number of alternatives including, but not limited to: a merger or other business combination, one or more joint venture and/or farm-out transactions, a recapitalization, recruitment of a management team, a corporate reorganization, a distribution of cash assets, a disposition of properties or other corporate transactions.
The Company cautions that should it elect to distribute its cash assets, the Company's ability to declare dividends is limited by Section 43 of the Alberta Business Corporations Act, which provides that a corporation shall not declare or pay a dividend if there are reasonable grounds for believing that: (a) the corporation is, or would after the payment be, unable to pay its liabilities as they become due, or (b) the realizable value of the corporation's assets would thereby be less than the aggregate of its liabilities and stated capital of all classes. In this regard, any cash distribution, if declared, would be subject to: limitations set out in applicable legislation, and cash reserves required to account for costs associated with the Company's properties, should the Company not be in a position to dispose of such properties in a suitable manner beforehand.