CALGARY, ALBERTA--(Marketwired - Feb. 2, 2015) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Company") is pleased to announce that the holders ("Debentureholders") of its $86.25 million 6.25% convertible unsecured subordinated debentures due February 28, 2016 (the "2016 Debentures") and $85.0 million 6.50% convertible unsecured subordinated debentures due October 31, 2018 (the "2018 Debentures" and together with the 2016 Debentures, the "Debentures") have approved, by way of extraordinary resolution, the previously announced transaction to exchange Arcan's Debentures into equity (the "Exchange Shares") at an exchange price of $0.15 per Exchange Share (the "Exchange Transaction"). The Exchange Transaction was approved by approximately 85.10% of the votes cast by Debentureholders at the meeting of Debentureholders held on February 2, 2015.
The Debentures are currently listed and traded on the facilities of the TSX Ventures Exchange ("TSXV"). The trading symbol for the 2016 Debentures is "ARN.DB" and for the 2018 Debentures is "ARN.DB.B". The Company has requested approval from the TSXV to de-list each of the 2016 Debentures and 2018 Debentures concurrently with the listing of the Exchange Shares on the TSXV.
Subject to the satisfaction of all conditions to closing, the Exchange Transaction is expected to occur on or about February 6, 2015. The Exchange Shares to which holders of Debentures are entitled to pursuant to the Exchange Transaction will be delivered to CDS & Co. and CDS & Co. and the applicable participants will distribute the Exchange Shares through the book-entry only system to the beneficial owners of the Debentures. Holders of Debentures do not need to submit a letter of transmittal and should contact the broker, dealer, bank, trust company or other nominee through which they hold their Debentures if they have any questions concerning obtaining payment for their Debentures upon the completion of the Exchange Transaction. Listing of the Exchange Shares and de-listing of the Debentures is expected to occur on the first trading day following the closing of the Exchange Transaction.
Arcan also announces today that it has entered into agreements with its employees to cancel all of its issued and outstanding stock options for nominal consideration.
About Arcan Resources Ltd.
Arcan Resources Ltd. is an Alberta, Canada corporation that is principally engaged in the exploration, development and acquisition of petroleum and natural gas located in the Western Canada Sedimentary Basin. Additional information about the Company, including the Company's annual information form for the year ended December 31, 2013, is available under Arcan's profile on SEDAR