CALGARY, Aug. 14, 2014 /CNW/ - Ivanhoe Energy (TSX: IE)
(NASDAQ: IVAN) announced today that it will proceed with the
share consolidation as proposed in the Management Proxy Circular
and approved at the Company's special meeting of shareholders on
Wednesday August 13, 2014.
Shareholders holding 51% of the Company's outstanding common shares
attended the meeting in person or by proxy and 82% of the votes
cast were in favour of the resolution. The Company's Board of
Directors has selected a share consolidation ratio of one new
common share for every seven existing common shares.
The consolidation of the Company's common shares is intended to
establish the basis for the shares to trade above $1.00, as per the listing requirements of the
NASDAQ Stock Market ("NASDAQ"). Taking this step will support
the Company's efforts to maintain market access and trading
liquidity of current and future shareholders who trade on the
NASDAQ exchange.
The consolidation will reduce the number of outstanding common
shares from approximately 114.8 million to approximately 16.4
million. Proportionate adjustments will be made to the
Company's outstanding convertible debentures, stock options and
restricted share units. No fractional common shares will be
issued pursuant to the consolidation and any fractional shares that
would have otherwise been issued will be rounded down or up to the
nearest whole number.
The Company will be seeking the final approval from the Toronto
Stock Exchange ("TSX") to effect the consolidation and has provided
notification of the consolidation to NASDAQ. Subject to final
confirmation by TSX and NASDAQ, it is expected that the
post-consolidation common shares will begin trading on each of
NASDAQ and TSX at the opening of markets on August 18, 2014 under its current NASDAQ and TSX
trading symbols, "IVAN" and "IE", respectively.
Letters of transmittal with respect to the share consolidation
are being mailed to the Company's registered shareholders.
All registered shareholders will be required to send their share
certificates representing pre-consolidation common shares, along
with a properly executed letter of transmittal, to the Company's
registrar and transfer agent, CST Trust Company ("CST"), in
accordance with the instructions provided in the letter of
transmittal. All registered shareholders who submit to CST a
completed letter of transmittal, along with their respective
certificates representing pre-consolidation common shares, will
receive in exchange new certificates representing their
post-consolidation common shares. Shareholders who hold their
common shares through a broker, investment dealer, bank, trust
company or other nominee or intermediary should contact that
nominee or intermediary for assistance in depositing their common
shares in connection with the share consolidation.
Ivanhoe Energy is an independent international heavy oil
exploration and development company focused on pursuing long-term
growth in its reserves and production using advanced technologies,
including its proprietary heavy oil upgrading process
(HTL®). Core operations are in Canada, United
States, and Ecuador, with
business development opportunities worldwide. Ivanhoe Energy trades
on the Toronto Stock Exchange with the ticker symbol IE and on the
NASDAQ Capital Market with the ticker symbol IVAN. For more
information about Ivanhoe Energy Inc. please visit
www.ivanhoeenergy.com.
FORWARD-LOOKING STATEMENTS: This document
includes forward-looking statements, including forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but
are not limited to the Company's ability to maintain NASDAQ listing
requirements, including minimum bid price, the receipt of final
approval from the TSX, the anticipated date on which the
post-consolidation common shares will begin trading on the TSX and
the NASDAQ, the potential for commercialization and future
application of the heavy oil upgrading technology and other
technologies, statements relating to the continued advancement of
Ivanhoe Energy's projects, statements relating to the timing and
amount of proceeds of agreed upon and contemplated disposition
transactions, statements relating to anticipated capital
expenditures, statements relating to the timing and success
of regulatory review applications, and other statements which are
not historical facts. When used in this document, the words such as
"could," "plan," "estimate," "expect," "intend," "may,"
"potential," "should," and similar expressions relating to matters
that are not historical facts are forward-looking statements.
Although Ivanhoe Energy believes that its expectations reflected in
these forward-looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that
actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results
to differ from these forward-looking statements include the
potential that the Company's projects will experience technological
and mechanical problems, new product development will not proceed
as planned, the HTL® technology to upgrade bitumen and
heavy oil may not be commercially viable, geological conditions in
reservoirs may not result in commercial levels of oil and gas
production, the availability of drilling rigs and other support
services, uncertainties about the estimates of reserves, the risk
associated with doing business in foreign countries, environmental
risks, changes in product prices, our ability to raise capital as
and when required, our ability to complete agreed upon and planned
asset dispositions, competition and other risks disclosed in
Ivanhoe Energy's 2013 Annual Report on Form 10-K filed with the
U.S. Securities and Exchange Commission on EDGAR and the Canadian
Securities Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.