As the oil sector continues to struggle and debt becomes increasingly more difficult to service, TSX-listed Alberta oil company Exall Energy (
TSX:T.EE,
Stock Forum) has been halted by the Alberta Securities Commission after ASC staff found the company “failed to disclose, in accordance with Alberta securities laws, that it had entered into receivership and that its board of directors had resigned.”
IIROC temporarily halted trading in the company last week ‘pending news’. That news has yet to arrive, which forced the ASC’s hand.
Somewhat akin to a midnight move, with the keys tossed on the desk on the way out, the Exall website makes no mention of receivership, nor changes to personnel, nor a trading halt.
Hot on the heels of an announcement last week by Viking Investments Group (
OTCQB:VKIN,
Stock Forum) that it
would not proceed with efforts to secure financing to help repay Exall’s senior, secured debt, the ASC action comes as the TSX has announced a
delisting review of the company for failure to meet the basic listing requirements.
MNP Ltd. was
court ppointed as receiver to the company on March 25, shortly before the board stepped down.
Those directors, Stephen Roman, Frank Rebeyka, Wayne Egan, Bernard Lang, D. Allan Menzies, Roderick Phipps, and CEO Roger Dueck, remain listed on the director page of
the Exall.com website.
The company had been struggling with debt since 2012, when a news release confirmed the
doubling of its debenture financing to $23m, for the “capital program for the development of the Company's Gilwood light oil exploration and development program in Mitsue, Alberta.” T.EE reported a $17m net loss for 2013.
The last press release listed on the Exall site mentions, “the next semi-annual interest payment under Exall’s outstanding $23 million convertible debenture is due on March 31, 2015, in the amount of $888,808.22,” adding, “Absent closing of the Bond Transaction, and other financing arrangements, Exall will not have proceeds available to make this required interest payment.”
Sadly, for long holders, it appears that was the closest the outgoing Exall board was prepared to come to informing shareholders the jig was up.
In early 2012, Exall stock hit $2.15. At the halt, it was trading at $0.05, for a $3.3m market cap on 66.6m shares outstanding.