Quetzal Energy Inc.

Quetzal Energy Inc.

November 19, 2008 11:57 ET

Quetzal Energy Inc. Grants Security Interests Against Assets

TORONTO, ONTARIO--(Marketwire - Nov. 19, 2008) -


Quetzal Energy Inc. ("Quetzal") announces that it has granted a general security interest against its assets in connection with a loan to Quetzal in the amount up to U.S.$150,000 made by Nationwide Industries Inc. dba National Buildings, a company owned in part by Steven J. Reynolds. The loan and the granting of the security interest are "related party transactions" as Mr. Reynolds is the Chief Executive Officer and a director of Quetzal. The loan is due on demand and interest accrues at a rate of 18% per annum. The purpose of the transaction was to provide funds for certain expenses relating to Quetzal's operations while Quetzal continues to pursue financing options. Quetzal's Board of Directors has approved the loan and the granting of the security interest with Mr. Reynolds abstaining from the consideration of, or voting on, these matters. Exemptions from the valuation and minority approval requirements of Multi-lateral Instrument 61-101 are relied upon by Quetzal as the fair market value of the subject matter and consideration is less than 25% of Quetzal's market capitalization, among other exemptions.

Quetzal has also granted a security interest against its assets to secure amounts that are or will in the future be owed to its external legal counsel.

About Quetzal Energy Inc.

Quetzal is a junior oil and gas company with properties in Guatamala.

Forward-looking statements

Certain statements in this press release are forward-looking statements within the meaning of applicable securities law. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Quetzal cannot assure that actual results will be consistent with these forward-looking statements are subject to change. Unless required by applicable securities law, Quetzal does not assume any obligation to update forward-looking statements.

Contact Information

  • Quetzal Energy Inc.
    Wayne Fraser
    Chief Financial Officer
    (416) 362-9096