Carpatsky Announces Preferred Stock Sale to Bellwether Exploration Company.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Jan. 7, 2000 Carpatsky Petroleum Inc. (CDNX CDNX See Canadian Venture Exchange (CDNX). :KPY) today announced the sale of US $4,000,000 of its Convertible Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , Series A to Bellwether Exploration Company (Nasdaq:BELW). Carpatsky also announced the revision of the terms of its merger agreement with Pease Oil and Gas Co. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :WPOG). On Dec. 30, 1999, Carpatsky issued 95.45 million Convertible Preferred Shares, Series A and warrants to acquire an additional 12.5 million common shares to Bellwether Exploration Company for aggregate proceeds of US $4,000,000. The preferred shares are convertible (at US $0.08 per share) into 50 million common shares of Carpatsky (representing approximately 40% of the common shares), do not carry a preferential dividend and have majority voting Majority voting Voting system under which corporate shareholders vote for each director separately. Related: Cumulative voting. majority voting rights over the Company. In connection with this investment, J.P. Bryan, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bellwether was appointed chairman and CEO of Carpatsky and three Carpatsky directors retired and were replaced by four Bellwether appointees (Messrs. Jack Birks, Donald M. Boykiw, John H. Kousinioris and Timothy J. Robson), giving Bellwether officers or nominees five of the now eight directorships of Carpatsky. Additionally, Rob Bensh, senior vice president - finance, of Bellwether was appointed vice president of Carpatsky. In connection with the financing, the terms of the merger agreement between Carpatsky and Pease were amended to (1) approve the Bellwether investment and commit Pease to issue a similar class of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to Bellwether upon consummation of its merger with Carpatsky, (2) revise the sharing ratio so that the Pease shareholders will retain, in the aggregate, a 12.5% equity interest in the merged entity after giving affect to the Bellwether financing, and (3) modify such other terms as necessary to take recent events into account. The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the adequacy of this release. |
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