TORONTO, ONTARIO--(Marketwire - March 4, 2013) - Stetson Oil & Gas Ltd. (TSX VENTURE:SSN) has received the decision of the Ontario Superior Court of Justice (Commercial List) that Thomas Weisel Partners Canada Inc. breached its bought deal engagement letter with Stetson dated July 13, 2008. To compensate Stetson for the damages caused by the 2008 failed bought deal financing, the court has ordered Weisel to pay Stetson damages of $16,042,669 plus interest and costs incurred by Stetson in connection with this litigation.
Ahmed Said, the Chairman and Chief Executive Officer of Stetson, commented, "This is a significant win for Stetson and our industry as it confirms the commitments of an underwriter in a bought deal financing. We look forward to using our strengthened balance sheet to pursue an exceptional and attractive investment opportunity."
Stetson sincerely thanks Bill Burden and his team at Cassels, Brock & Blackwell LLP for their dedication and strong advocacy of our claim these past four and a half years.
As a result of a 2010 merger transaction, Thomas Weisel Partners Canada Inc. has become a subsidiary of Stifel Financial Corp., which is a full service brokerage and investment banking firm based in St. Louis, Missouri.
Stetson has posted a copy of the decision under its profile on SEDAR at www.sedar.com.
Stetson Preference Shares
In September 2008, following the failed bought deal financing with Weisel, Stetson had to issue an aggregate of 85,696,408 preference shares as an incentive to attract the financing needed to purchase its land concessions in North Dakota. The preference shares are entitled to receive a portion of any proceeds that Stetson ultimately receives in connection with the Weisel litigation prior to December 31, 2013. The amount to be distributed in respect of the preference shares will be determined by the Stetson board of directors. There can be no assurance that Stetson will be successful should the decision be appealed or that any proceeds of the judgment (as it may be modified on appeal, if any) will be received by Stetson prior to December 31, 2013. The preference shares trade on the TSX Venture Exchange under the symbol "SSN.PR.A".
Stetson is a junior oil and gas company with its securities listed under the TSX Venture Exchange under the symbol "SSN".
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the collection of awarded damages; the enforcement of this judgment; the availability and outcome of any appeal of this decision, and the portion of proceeds payable to holders of Series 1 Shares. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Stetson, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although Stetson has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Stetson does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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