BUENOS AIRES, ARGENTINA--(Marketwired - Aug. 12, 2014) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
Estrella International Energy Services Ltd. (the "Company" or "Estrella") (TSX VENTURE:EEN), announces that Ringo Holding, L.P., the controlling shareholder of the Company, has agreed to loan US$7.3 million to the Company pursuant to a loan agreement and promissory note dated as of August 12th, 2014, which loan can be increased to US$25 million (the "Loan"). The Loan bears interest at the rate of 4% per annum and matures on December 12th, 2015. Ringo Holding, L.P. has disbursed US$1.5 million on the Loan as of the date hereof. The Company expects to receive additional disbursements of US$5.8 million on the Loan during the months of August and September 2014.
The directors of the Company have determined that the Loan is on commercially reasonable terms that are no less advantageous to the Company that what it could have received on the open market.
The proceeds from the Loan will be used for capital expenditures associated with new expansion projects and for general working capital purposes.
A copy of the loan agreement and the promissory note can be found on SEDAR at www.SEDAR.com.
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Forward-looking statements in this press release include, but are not limited to, statements with respect to the future business plans, prospects and services.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
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