VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 16, 2017) - Range Energy Resources Inc. (the "Company") (CSE:RGO)(CSE:RGO.CN)(FRANKFURT:YGK) is pleased to announce that further to the Company's news release of February 15, 2017, it has received secured convertible loans totalling $1,479,749 (the "Loans") from Gulf LNG America, LLC ("Gulf") and Harrington Global Opportunities Fund S.A.R.L. ("Harrington"), which are the first advances under the credit facility pursuant to the loan agreements entered into with Gulf and Harrington on February 14, 2017 (the "Loan Agreements"). Gulf and Harrington are both significant shareholders of the Company. See the Company's news release of February 15, 2017 for information about the Loan Agreements. The Loans are evidenced by a secured convertible promissory note in favour of Gulf for the principal amount of $1,319,749 and a secured convertible promissory note in favour of Harrington for the principal amount of $160,000 (together the "Notes). The maturity date of the principal amount, interest and any fees of the Loans is February 15, 2018 and the rate of interest is 10% per annum.
The Loans are secured by the general security agreement dated February 14, 2017 pursuant to which the Company granted in favour of the lenders a security interest in all the Company's present and after-acquired real and personal property (the "Collateral"). See the Company's news release of February 15, 2017 for information related to the exclusion from the Collateral of the Company's shares of NAZZ2 (the "NAAZ2 Shares") and certain rights of the Company derived from or connected to the NAAZ2 Shares (the "NAAZ2 Shares Derivative Rights"). If the Company obtains the consents necessary to grant to the lenders a lien on the NAAZ2 Shares and the NAAZ2 Shares Derivative Rights, this property will become part of the Collateral.
All or any portion of the principal amount, accrued interest and fees outstanding under the Notes is convertible by the lenders into common shares of the Company at any time before the maturity date, at a conversion price per share set out in the Notes, subject to adjustment upon certain events occurring. The conversion price for the Loans was approved by the Company's board and by the Canadian Securities Exchange.
The principal amounts advanced by the lenders will be used by the Company for working capital requirements in respect of the production project in the Khalakan Block in the Kurdistan Region, general corporate purposes and any capital expenditures for the purchase by the Company of property or assets permitted under the Loan Agreements.
For further information on Range Energy Resources Inc., please visit the Company's web site at www.rangeenergyresources.com.
On Behalf of the Board of Directors:
Toufic Chahine, Chairman
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This news release contains certain statements that may be deemed to include "forward-looking information". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Range Energy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Range Energy's management on the date the statements are made. Except as required by law, Range Energy Resources Inc. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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