Nextraction Energy Corp.
TSX VENTURE : NE

Nextraction Energy Corp.

May 31, 2013 09:22 ET

Nextraction Energy Corp. Announces Loan Facility Extension

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2013) -

THIS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMMINATION IN THE UNITED STATES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Nextraction Energy Corp. (TSX VENTURE:NE) (the "Company" or "Nextraction") is pleased to announce that it has entered into an amending agreement to extend its non‐revolving term loan facility (the "Loan Facility") with Tallinn Capital Mezzanine Limited Partnership ("Tallinn"). Maturity of the Loan Facility has been extended to November 30, 2013 and Tallinn has agreed to waive monthly net sales production minimum requirements and minimum current ratio requirements which the Company had been in default of until July 31, 2013. The Company has agreed to repay $2 million of the principal amount owing under the Loan Facility on the earlier of July 31, 2013 or the closing of the Offering. Furthermore, subject to the debentures proposed to be offered pursuant to the Company's recently announced proposed short form prospectus offering (the "Offering") being subordinated and postponed to the Loan Facility on terms acceptable to Tallinn, the successful completion of the Offering and the Company not otherwise being in default under the Loan Facility, Tallinn has also agreed to waive requirements to repay the Loan Facility from proceeds of the Offering beyond the first $2 million of proceeds raised. The outstanding balance owing under the Loan Facility is approximately $3.37 million.

About Nextraction Energy Corp.

Nextraction Energy Corp. is a Canadian junior oil and natural gas company engaged in the exploration and development of oil and natural gas resources in the Western Canadian Basin. The Company's model is the "next round of extraction on known plays." Nextraction targets oil focused projects along trends with known reserves that provide low risk, high return development opportunities in both conventional and unconventional resource projects.

READER ADVISORY

Cautionary Note Regarding Forward Looking Statements

Certain statements made and information contained herein constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Often, but not always, forward-looking statements or information can be identified by the use of words 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 words and phrases that state or indicate that certain actions, events or results "may", "may have", "could", "would", "might" or "will" be taken, occur or be achieved.

These statements include, but are not limited to, those made above with respect to future events or the Company's future performance, the repayment of the Loan Facility, the anticipated completion of the Offering, and use of proceeds of the Offering.

Although management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward- looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such assumptions, risks, uncertainties and factors include, but are not limited to:

  1. closing of the Offering could be delayed if the Company cannot obtain necessary regulatory approvals within anticipated timelines;
  2. closing of the Offering may not occur at all unless certain conditions for transactions of this kind are satisfied, including but not limited to the Company receiving a receipt in respect of its short form prospectus in a timely manner from the applicable securities regulatory authorities;
  3. completion of the Offering may not occur unless terms acceptable to Tallinn are agreed to with respect to the subordination and postponement of the debentures proposed to be offered under the Offering; and
  4. variations in market conditions may affect the Company's ability to close the Offering on the terms described above, or at all.

Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Actual results may vary materially from the information provided in this release, and there is no representation by the Company that the actual results realized in the future will be the same in whole or in part as those presented herein. Accordingly, readers should not place undue reliance on forward- looking statements or forward-looking information. These statements speak only as of the date of this Press Release and are expressly qualified, in their entirety, by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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