TORONTO, ONTARIO--(Marketwired - Jun 1, 2016) - PetroMaroc Corporation plc (TSX VENTURE:PMA) (the "Company" or "PetroMaroc") is pleased to announce it intends to complete a secured, non-convertible debenture financing (the "Financing") of Cdn $390,000 (the "2016 Debentures"), the proceeds of which will be used for general working capital purposes. The 2016 Debentures will mature on September 30, 2016 (the "Maturity Date") and will bear interest at a rate of 15% per annum, calculated and payable in arrears, in cash, on the Maturity Date. The Financing is subject to approval by the TSX Venture Exchange (the "TSXV") and by the holders of the 2014 Debentures and the 2015 Debenture as described below.
No warrants will be issued, and no commission and/or finders' fee will be payable in connection with the Financing. The 2016 Debentures will be subject to a four-month hold period under Canadian securities laws from the date of issuance.
The obligations of the Company under the 2016 Debentures will be secured by a security interest in the Company's present and after acquired property. The 2016 Debentures will rank as to principal and interest equally with the Cdn $9.7 million secured convertible debentures of the Company originally issued on April 10, 2014 (the "2014 Debentures") and the Cdn $1 million secured, non-convertible debenture of the Company originally issued on October 30, 2015 (the "2015 Debenture" and together with the 2014 Debentures, the "Debentures").
The Company intends to refinance or repay the indebtedness under the Debenture through a future corporate restructuring process, in conjunction with restructuring of the 2014 Debentures and the 2015 Debenture.
About PetroMaroc
PetroMaroc is an independent oil and gas company focused on its significant land position in Morocco. The Company has a 50 percent operated interest in the Sidi Moktar licence area covering 2,683 square kilometres which interest is subject to a sale and purchase agreement with Sound Energy plc dated 8 March 2016. PetroMaroc is working closely with Morocco's National Office of Hydrocarbons and Mines (ONHYM) as a committed long-term partner to unlock the hydrocarbon potential of the region. Morocco offers a politically stable environment to work within and has favourable fiscal terms to energy producers. PetroMaroc is a public company listed on the TSX Venture Exchange under the symbol "PMA".
Additional information about the Company can be found at www.petromaroc.co and under the Company's SEDAR profile at www.sedar.com.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Such forward-looking statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "project", "potential", "targeting", "intend", "could", "might", "continue" or the negative of these terms or other similar terms. Forward-looking statements in this press release include, but are not limited to, statements regarding the ability of the Company to complete the Financing, to obtain the approval of the Financing by the TSXV and by the holders of the Debentures, to complete any future corporate restructuring process, to secure immediate capital in the near term to remain a going concern; PetroMaroc's plans, intentions, beliefs and current expectations with respect to the ability of the Company to meet its obligations under the Debentures, and otherwise meet its outstanding financial and other obligations; management's plans, intentions, beliefs and current expectations regarding PetroMaroc's future business operations, well drilling and operating activities and performance of the Company; and management's plans and expectations regarding further well drilling activities and the results of those activities.