Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

January 30, 2015 13:28 ET

Candax Energy Inc. Announces Partial Debt Repayment and Waiver

TORONTO, ONTARIO--(Marketwired - Jan. 30, 2015) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), a company focused on mature oil field development in Tunisia, announces today that it has come to the following agreement regarding the repayment of its Senior debt:

  • Partial repayment of $500,000 in respect of Tranche A;
  • Payment of $350,000 overdue interests in respect of the full and final settlement of the interest due from period 1 October 2012 until the Second Amendment and Restatement effective date;
  • Payment of $90,739 of interests due in respect of Tranche A

Notwithstanding the above detailed payment, the Company will not pay the remainder of the Tranche A and Tranche B amounts due under the Senior Facility Agreement ($3,500,000) on January 31, 2015 and will consequently be in breach as regard to its financial obligation. By waiver and amendment letter signed on January 29, 2015, the Company has obtained from the lender an agreement to amend the Senior Facility Agreement and not to seek any remedy under the Facility Agreement in respect of this unpaid amount until April 30, 2015, or earlier in specific circumstances. A copy of the amendment and waiver letter will be filed publicly by the Company and available on SEDAR.

"The support of our lender and shareholder was key to having time to review strategic and financial alternatives available to the Company. The amendment and waiver letter obtained was an indispensable step. The Company remains with more than $6 million of cash on hand as at the end of January 2015" commented Candax CFO Pierre-Henri Boutant.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements.

Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Candax Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.

About Candax

Candax is an international energy company with offices in Toronto and Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds a royalty interest in an exploration permit in Madagascar.

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