Cash injection for Solv-Ex
By IRENE CHOMOKOVSKI
Staff writer
Solv-Ex Corporation announced yesterday it's getting more money from overseas investors.
The oilsands company has secured $22 million US in debentures to further develop its plant, located 80 kilometres north of Fort
McMurray.
Debentures are like corporate bonds or a promise to pay, backed only by the credit of the issuer.
Another $10 million US is on its way in the next six weeks after a registration statement is filed with the Securities and Exchange
Commission, Solv-Ex announced in a statement.
The debt, converted into shares of common stock, includes $2 million from Solv-Ex chairperson and chief executive officer John
Rendall.
The debentures mature on March 31, 1999 and bear interest at five per cent per annum payable in arrears at maturity in cash or
common stock.
Solv-Ex has the right to call the debentures for redemption at any time by paying the holder 120 per cent of the principal amount and
all accrued interest and penalties.
Financing was arranged through Wharton Capital, Groome Capital and ABN-AMRO Bank of Switzerland.
Richard T. Groome, the head of Groome Capital, visited the Solv-Ex site in late March. He also visited the company's Albuquerque
pilot plant.
"We are pleased at the opportunity to have become involved with Solv-Ex," Groome said in the news release.
"We have taken the time and effort to personally inspect and review the project Solv-Ex has made with its new plant."
No one was available from Solv-Ex to comment at press time.
The company has spent $80 million building its test facility to date.
Solv-Ex started product on site March 29, amid claims from critics it wouldn't produce oil.
Testing of the extraction plant began last month. It's still in the testing process, producing oil to be sent to labs.
The company has not said when it expects to begin commercial testing.
In Tuesday's trading in the NASQ Stock Exchange, Solv-Ex shares closed at $13.13, up 63 cents.
Copyright c 1997 Fort McMurray Today
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Comments:
1. Groome visited before the plant was operating.
2. Why must all recent funds come from overseas investors? Doesn't anyone in the US or Canada (other than Rendall) have enough faith? |
