Silk Road Energy Inc.
TSX VENTURE : SLK.P

January 30, 2015 09:00 ET

Silk Road Energy Inc. Announces Proposed Shares for Debt Settlement and Management Updates

CALGARY, ALBERTA--(Marketwired - Jan. 30, 2015) -

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Silk Road Energy Inc. (the "Corporation" or "Silk Road") (TSX VENTURE:SLK.P) announces that it intends to enter into debt settlement agreements to settle the Corporation's outstanding non-bank debt owing to three creditors of the Corporation ("Debt Settlements"), each of whom is an officer of the Corporation, by the issuance of up to 2,640,000 common shares ("Common Shares") in the capital of the Corporation at a price of $0.10 per Common Share.

It is expected that disinterested shareholder approval in connection with the Debt Settlements will be sought at the Corporation's next annual and special meeting of shareholders. The Debt Settlements will be subject to completion of formal documentation and receipt of shareholder and regulatory approval.

The Corporation is pleased to announce the appointment of Zulfikar Rashid as Chief Operating Officer ("COO") of the Corporation. Mr. Rashid joins the Corporation's executive team consisting of Chief Executive Officer ("CEO"), Vladimir Ratic, and Chief Financial Officer ("CFO"), Derrick Colling.

The Corporation announces the board of directors has approved employment agreements with each of the CEO, CFO and COO. Pursuant to the terms of the CEO and COO employment agreements, each officer's remuneration will consist of cash payments and the issuance of Common Shares. Pursuant to the terms of the CFO employment agreement, the CFO's remuneration shall consist of the issuance of Common Shares.

Cautionary Statements:

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation's current belief or assumptions as to the outcome and timing of such future events. Forward-looking information included in this press release includes statements with respect to the completion and timing of the Debt Settlements and the intention to seek shareholder approval for the Debt Settlements and the remuneration payable pursuant to the employment agreements. Readers are cautioned not to place undue reliance on forward-looking statements. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct.

Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Corporation. The material factors and assumptions include that the Corporation will obtain all necessary regulatory approvals for the Debt Settlements and that the board of directors will not decide to cease proceedings with respect to seeking shareholder approval of the Debt Settlements. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: the failure to obtain the required approvals for the Debt Settlements in a timely fashion or at all, the ability for the Corporation to enter into agreements respecting the Debt Settlements or to enter into the employment agreements, general economic conditions market risks relating to the Oil and gas industry in general.

The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

The TSXV has in no way passed upon the merits of the proposed Debt Settlements and has neither approved nor disapproved the contents of this press release.

Neither TSXV Venture Exchange Inc. nor its Regulations Services Provided (as that term is defined in the policies of the TSXV Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Silk Road Energy Inc.
    Zulfikar Rashid, Director
    (403) 240-1821