Arcan exchanges two convertible series for 1.14 billion shares

By Susanna Moon

Chicago, Feb. 13 – Arcan Resources Ltd. said it exchanged two series of convertible debentures into 1,141,666,667 common shares.

As previously announced, the company exchanged its $86.25 million 6.25% convertible unsecured subordinated debentures due Feb. 28, 2016 and $85 million 6.5% convertible unsecured subordinated debentures due Oct. 31, 2018.

The exchange was completed Friday, extended from Feb. 6.

The exchange shares will begin trading on the TSX Venture Exchange on Feb. 17, concurrently with the delisting of the two series of convertibles.

Holders will receive about 6,667 exchange shares for every $1,000 principal amount of debentures plus accrued interest to and including Friday, according to a company press release.

The company announced on Feb. 2 that it had received approval from holders of an overall 85.1% of its 6.25% and 6.5% debentures to exchange the securities.

Bondholders were asked to vote for a proposed transaction that would result in the exchange of all of the issued and outstanding debentures into equity at an exchange price of C$0.15 per share, according to a previous press release.

Arcan is a Calgary, Alta.-based company engaged in the exploration, development and acquisition of petroleum and natural gas located in the Western Canada sedimentary basin.

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