Kinetex Resources Corporation

Kinetex Resources Corporation

March 09, 2009 20:23 ET

Kinetex Resources Converts $14.25M Loan to Equity

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2009) - Kinetex Resources Corporation (TSX VENTURE:KTX) (the "Company" or "Kinetex") announced that it has granted its wholly-owned subsidiary, Kinetex Multi-Component Services Inc. ("KMCS") the authority to convert its shareholder's loan into equity. The shareholder's loan of $14,250,000 was converted into 1,425,000 non-voting class B Preferred Shares of KMCS, with a deemed face value of $10 per share. The Preferred Shares will pay a dividend of 3.75% payable annually, with the positions of all stakeholders remaining unchanged.

"We are pleased with the progress being made by KMCS, and are confident of its future prospects," stated Gil Schneider, CEO of Kinetex. "Our conversion of debt to equity strengthens the financial structure of KMCS, and emphasizes Kinetex's ongoing support. We continue to see opportunities for growth in 2009 and, through this debt conversion, KMCS is provided with the improved capital structure to pursue its goals."

About Kinetex

Kinetex is an oil, gas and mineral exploration services company with offices in Vancouver, BC, Calgary, Alberta and Bogota, Colombia. Through its subsidiaries, Kinetex provides data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the energy, metals and minerals exploration and development industries seeking to go beyond the limitations of traditional data acquisition methods.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. The company seeks safe harbour.

Contact Information

  • Kinetex Resources Corporation
    Gil Schneider
    (604) 484-5761 or Toll Free: 1-888-484-5761
    (604) 484-5760 (FAX)