I am pleased with this "warning". It shows a conversion of loan to common shares at a rate of 0.96$. Robert M. Friedland now is increasing his holdings. At present the SP is 0.95$ and thus could be acquired on open market at a lower price (by -0.01$). This seems to indicate that Robert Friedland expect to SP to increase substantially of the next short while. Let's see what is going to happen this week.
Monday, March 19, 2012
CALGARY, March 19, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) today issued an early warning report, pursuant to the early warning requirements of National Instrument 62-103 with respect to the common shares in the capital of Ivanhoe Energy (the "Common Shares").
In accordance with the early warning requirements, applicable Canadian securities laws and prior releases and filings by Ivanhoe Energy, Ivanhoe Energy is required to report certain information respecting securities held by Robert M. Friedland ("Mr. Friedland").
Pursuant to an amending agreement, dated March 14, 2012, amongst Ivanhoe Capital Finance Ltd. ("Ivanhoe Capital") and Ivanhoe Energy, which amended that certain loan agreement, dated December 30, 2011, Mr. Friedland acquired, indirectly through his wholly-owned corporation, Ivanhoe Capital, the right to convert, at any time prior to maturity of the loan, the then outstanding principal into Common Shares at a conversion rate of one whole Common Share for each CAD
.96 of principal amount then outstanding, subject to customary adjustments (the "Conversion Right"). The conversion price of CAD
.96 was calculated with reference to the volume weighted average trading price of the Common Shares on the Toronto Stock Exchange for the five consecutive trading days preceding March 12, 2012. The exercise of the Conversion Right may result in up to 10,484,375 Common Shares being issued to Ivanhoe Capital, which would represent 2.96% of the outstanding Common Shares (taking account of the conversion).
The Conversion Right was granted as consideration for the subordination of an existing loan to a new third party facility and no new proceeds were received by Ivanhoe Energy.
As of March 16, 2012, Ivanhoe Energy had outstanding 348,972,761 Common Shares, which number includes those securities held by Mr. Friedland which are convertible into Common Shares within 60 days. Mr. Friedland currently, directly and indirectly, owns 54,045,058 Common Shares, representing approximately 15.49% of the issued share capital of Ivanhoe Energy. If the Conversion Right is exercised for the maximum amount permissible, it will result in Mr. Friedland owning 64,529,433 Common Shares, representing approximately 17.95% of the issued capital, taking account of the conversion. The values reported with respect to Mr. Friedland's holdings in Ivanhoe Energy reflect Common Shares currently held by him and those securities convertible into Common Shares within 60 days. The transaction occurred by private agreement.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder please go to the Ivanhoe Energy profile on SEDAR website www.sedar.com or visit Ivanhoe Energy's website at www.ivanhoeenergy.com, or contact the company at: +1.403.261.1700.