Mr. Andrew Biggs reports
PRIMELINE ENERGY ISSUES 4,923,768 SHARES TO PIHI
Primeline Energy Holdings Inc. has issued 4,923,768 new ordinary shares of Primeline to Primeline International (Holdings) Inc. (PIHI).
A total of 2,700,902 shares were issued in payment of a portion of interest due on $11.3-million (U.S.) principal amount convertible bonds, and a total of 2,222,866 shares were issued in payment of a portion of interest due on $9.3-million (U.S.) principal amount convertible bonds issued to PIHI, which is wholly owned by Victor Hwang, the company's president, chairman and majority shareholder. Interest is payable on the new bonds and the new B bonds quarterly at 7 per cent per annum, of which 4.5 per cent is payable in cash and 2.5 per cent in shares. To assist the company with its cash flow until such time as the arbitral tribunal in the company's previously announced arbitration against China National Offshore Oil Corp. and its subsidiary CNOOC China Ltd. issues its award, Mr. Hwang and PIHI have previously agreed that payment of the cash interest in respect of the new bonds and the new B bonds will be deferred and accrued, while share interest shall continue to be paid in accordance with the terms of the new bonds and the new B bonds.
The shares issued in respect of the share interest will be issued at a deemed price of 3.5 cents per share, the closing price of the shares on the TSX Venture Exchange on the trading day preceding the interest payment date of June 14, 2019.
Upon completion of the issue, Mr. Hwang, together with PIHI, owns 136,680,287 shares, representing approximately 65.5 per cent of the company's 208,559,959 shares issued and outstanding.
About Primeline Energy Holdings Inc.
Primeline is an exploration and production company focusing exclusively on China natural resources under petroleum contracts with CNOOC in the East China Sea. LS36-1 gas field has been in production since July, 2014.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.