Primeline Notified Of Major Shareholder Private Sale Of Shares
Primeline Energy Holdings Inc. (TSX Venture: PEH) (“Primeline” or the “Company”), listed on the TSX Venture Exchange Inc. under the trading symbol “PEH” wishes to announce that it has received notification from its major shareholder, Primeline International (Holdings) Inc. (“PIHI”), that PIHI has filed a notice of intention to sell 3,500,000 common shares (the “Proposed Sale”) privately.
As informed by PIHI, the purpose of the Proposed Sale is mainly to fulfill existing contractual obligations which became effective as a result of the closing of the financing (the “Financing”) previously announced on April 4, 2006. The Proposed Sale consists mainly of a private sale between PIHI and Maxwell Mercantile and one other party to honour call option agreements made in February 2005 and 2006.
Prior to the Financing, PIHI was the owner of 16,780,244 shares. As part of the Financing, it converted $7.9 million of debt owing to PIHI into 5,266,667 units at a conversion price of $1.50 per unit (the “Debt Conversion”) which was the same price as the units issued under the Financing. The aggregate shareholdings of PIHI after the Proposed Sale and the Debt Conversion will be 18,546,911shares, being an increase of 1,766,667 shares from its share ownership position prior to the Financing. PIHI continues to be the biggest shareholder of the Company, holding 39.44% of the issued and outstanding shares of the Company.
Prior to the Financing, PIHI has been the sole provider of funds to the Company since 1995 which has supported the Company by shareholder’s loans to finance the Company’s operations over the years, including the drilling of the gas discovery well in the East China Sea.
With the recently closed Financing, the Company has sufficient funding for the next 18 month programme aiming to secure enough resources to justify commercial development and continuing the exploration of its 7,006 sq. km of concession area under the petroleum contract for Block 25/34 in the East China Sea. The Company is currently actively implementing its work programme of 3D seismic programme and the subsequent appraisal/ step out drilling programme.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
(signed) “Peter Kelty “
For More Information Please Contact:
Primeline Investor Relations
Tel. + 44 20 7501 0688
Fax. + 44 20 7501 0699
Toll Free: 1 877 818 0688
Web Site: www.primelineenergy.com
Port Mercantile Capital Inc.
Tel: +1 604 649 1981
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