Blue Mountain Completes Reorganization, Financing and Obtains Additional Share Deposit Agreements.Business Editors CALGARY, Alberta--(BUSINESS WIRE)--July 18, 2002 Blue Mountain Energy Ltd. ("Blue Mountain") TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. - "GAS" is pleased to announce that it has now received all necessary regulatory and shareholder approvals for the previously announced Reorganization which includes a consolidation of Blue Mountain's shares on a 1:12.5 basis and a name change to Blue Mountain Energy Ltd. from Blue Mountain Resources Ltd. (and a change in ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors from "BMR BMR basal metabolic rate. BMR abbr. basal metabolic rate BMR, n See basal metabolic rate. BMR basal metabolic rate. " to "GAS"). For further clarity, Blue Mountain closed at $0.30 per share on July 12th, equating to $3.75 per share on a post 1:12.5 consolidation basis. As Blue Mountain has completed its Reorganization, the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the $23.0 million financing which closed on June 12, 2002 have been released from escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. . The financing consisted of $20.0 million from investors at $3.00 per share, and $3.0 million from insiders. The recent $3.00 financing represents an equivalent Bolt Energy Ltd. ("Bolt") price of $0.94 based on the exchange ratio of 0.3125 Blue Mountain shares for each Bolt share under the previously announced takeover bid Noun 1. takeover bid - an offer to buy shares in order to take over the company two-tier bid - a takeover bid where the acquirer offers to pay more for the shares needed to gain control than for the remaining shares (the "Bolt Offer"), or $1.17 per share based on the Blue Mountain July 12 closing price (adjusted to reflect the consolidation as if it had occurred on July 12). Blue Mountain is also pleased to report that additional share deposit agreements representing approximately 10% of the issued and outstanding common shares of Bolt have been signed. Certain Bolt shareholders holding approximately 47% of the issued and outstanding common shares of Bolt have now agreed to tender to the Bolt Offer. The TSX Venture Exchange have neither approved nor disapproved the contents hereof. |
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