CALGARY, ALBERTA--(Marketwired - Aug. 20, 2014) - Arcan Resources Ltd. (TSX VENTURE:ARN) announces that at the special meeting held today in Calgary of holders of Arcan's common shares and debentures, the securityholders did not provide the requisite approvals for the previously announced plan of arrangement that would have seen Arcan acquired by Aspenleaf Energy Limited. As a result, Arcan and Aspenleaf have terminated the Arrangement Agreement between them.
"We began working to restructure the operational and financial underpinnings of Arcan about two years ago. Our proposed agreement with Aspenleaf, developed after a comprehensive series of professional and productive negotiations, provided a viable path forward. We completed a very thorough process that provided extensive opportunity for securityholders to evaluate this proposal, and they chose not to support it. Given the results, we are moving forward, releasing our second quarter results shortly and looking to carry out our winter drilling program, which will continue to generate cash flow and position Arcan to capture its full asset value. We will also continue to look for other solutions to mitigate our debt burden," said Terry McCoy, Arcan's CEO.
"We thank the employees of Arcan who have displayed relentless dedication through this process, and who will continue to work hard building value for shareholders. We also thank our Board of Directors for its diligent efforts and wise counsel in developing and putting forth to securityholders the proposed transaction," McCoy said.
Arcan plans to report on its second quarter 2014 financial and operating results by August 28, 2014.
About Arcan Resources Ltd.
Arcan Resources Ltd. is an Alberta, Canada corporation that is principally engaged in the exploration, development and acquisition of petroleum and natural gas located in Canada's Western Sedimentary Basin. Additional information about the Corporation is available under Arcan's profile on SEDAR at www.sedar.com and its website, www.arcanres.com.
Forward-Looking Information and Statements
This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "will," "shall," "continue," "expect" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to, among other things, Arcan's plans to proceed with its winter drilling program; Arcan's plans to release its second quarter financial and operating results; expectations regarding Arcan's ability to generate cash; and plans of the Corporation to seek to address its debt burden.
The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Arcan including, without limitation, Arcan's future access to capital and certain commodity price and other cost assumptions underlying the statements regarding the future prospects of Arcan. Arcan believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, certain risks detailed from time to time in Arcan's public disclosure documents including, without limitation, those risks identified in this press release and in Arcan's annual information form, copies of which are available on Arcan's SEDAR profile at www.sedar.com.
The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Arcan assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
Neither 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.