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Enter Symbol
or Name
USA
CA



Petra Petroleum Inc
Symbol PTL
Shares Issued 69,719,883
Close 2014-08-27 C$ 0.51
Market Cap C$ 35,557,140
Recent Sedar Documents

Petra Petroleum lends $5-million (U.S.) to Mitra

2014-11-20 15:32 ET - News Release

Mr. Michael Atkinson reports

PETRA PETROLEUM INC. ANNOUNCES COMPLETION OF BRIDGE LOAN FINANCING AND RECEIPT OF SUPPORT AGREEMENTS

Petra Petroleum Inc., in connection with the previously announced proposed business combination of Petra and Mitra Energy Ltd. to be effected by way of a scheme of arrangement in accordance with the laws of Bermuda, has closed the bridge loan to Mitra in the principal amount of $5-million (U.S.), the proceeds of which will be used to explore and develop Mitra's assets.

The bridge loan was made pursuant to a subscription for $5-million (U.S.) of senior unsecured convertible bonds maturing on May 10, 2015, pursuant to Mitra's existing $50-million (U.S.) convertible bond instrument, as amended. Prior to the issuance of the bridge bonds, unsecured convertible bonds in the principal amount of $40.9-million (U.S.) had been issued under the bond instrument. The bridge bonds rank pari passu with the original bonds. Mitra has covenanted not to incur additional debt which could take priority or rank equally to the bridge bonds and the original bonds, other than certain limited permitted indebtedness under the bond instrument that shall rank either pari passu with or be subordinated in priority to the bridge bonds and the original bonds.

Petra has also now received executed support agreements from Mitra shareholders, representing 50.21 per cent of the issued and outstanding shares of Mitra, pursuant to which they have agreed to vote in favour of the proposed transaction.

Additional information

In accordance with exchange policy, the corporation's shares are currently halted from trading and will remain so until such time as the exchange determines, which depending on the policies of the exchange, may not occur until the completion of the proposed transaction.

When available, additional information, including information relating to sponsorship, summary financial information in respect of the corporation and Mitra, and to the extent not contained in this press release, additional information with respect to assets, financing and insiders, will be provided by further press release.

Completion of the proposed transaction is subject to a number of conditions, including but not limited to, exchange acceptance and if required by exchange policies, majority of the minority shareholder approval. Where applicable, the proposed transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the proposed transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the proposed transaction, any information released or received with respect to the proposed transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Petra should be considered highly speculative.

A further press release will be prepared and disseminated regarding the proposed transaction and related transactions, in due course, in compliance with the policies of the exchange as information becomes available.

We seek Safe Harbor.

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