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Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that effective November 10, 2015, it has completed the second tranche of its private placement of unsecured convertible bonds in the aggregate principal amount of US$20,000,000 (the “Bonds”) announced by Primeline on May 11 and June 5, 2015. Primeline has issued US$8,000,000 principal amount Tranche B Convertible Bonds (the “Tranche B Bonds”) to GRF Prime Limited (“GRF”), a resources fund managed by GEMS Investment Management Limited. The term of the Tranche B Bonds is three years extendable for two one-year periods. Interest is payable quarterly at 7% per annum, of which 4.5% will be paid in cash and 2.5% in ordinary shares of Primeline (“Shares”) issued at a deemed price per Share equal to the volume-weighted average trading price of the Shares on the TSX-V for the 10 days preceding the interest payment date. The Tranche B Bonds will be convertible, at the option of GRF, at any time during the period commencing four months and a day following the date of issuance of the Tranche B Bonds up to the date that is 10 days prior to the date of maturity of the Tranche B Bonds, into Shares at a conversion price of CAD$0.85 per Share.
The principal amount of Tranche B Bonds previously agreed with GRF to be sold was US $10 million, on or before December 31, 2015. Primeline and GRF have agreed that GRF will purchase on or before February 29, 2016, an aggregate principal amount of US$2,000,000 Tranche C Bonds. Save for the extended outside date for purchase, the terms and conditions of the Tranche C Bonds will be identical to those of the Tranche B Bonds.
Primeline will now proceed to spud LS30-3-1, as announced in its press release of October 28, 2015.
The Tranche B Bonds were distributed pursuant to the exemption from the prospectus requirement of applicable securities legislation provided for at section 2.10 of NI 45-106. The Tranche B Bonds, and any Shares issued as interest or upon conversion, are subject to a statutory hold period of four months plus a day expiring on March 11, 2016 accordance with applicable securities laws.
About Primeline Energy Holdings Inc.
Primeline is an exploration and production company focusing exclusively on China’s resources to become a major supplier of gas and oil to the East China market. Primeline has a 100% Contractor’s interest in and is the operator of the Petroleum Contract with CNOOC Limited for Block 33/07 (5,877 sq km) in the East China Sea, and a 49% interest in the producing LS36-1 gas field in Block 25/34, together with CNOOC Limited (51% interest and acting as operator for the field development and production). Shares of Primeline are listed for trading on the TSX Venture Exchange (the “TSX-V”) under the symbol PEH.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
Dr. Ming Wang
Chief Executive Officer
|PRIMELINE ENERGY HOLDINGS INC.||CHF INVESTOR RELATIONS||VSA CAPITAL LIMITED|
|Dr. Ming Wang||Cathy Hume||Andrew Raca|
|CEO||CEO||Head of Corporate Finance|
|Phone: +44 207.499.8888||Phone: +1 416.868.1079||Phone : +44 203 005 5000|
|Fax: +44 207.499.2288||Fax: +1 416.868.6198||Email: ARaca@vsacapital.com|
|Toll Free: 1.877.818.0688||Email: email@example.com|
Neither the 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.