Alter NRG Corp.: News Release
CALGARY, ALBERTA--(Marketwire - June 7, 2012) - Alter NRG Corp. ("Alter NRG" or the "Corporation") (TSX:NRG) (OTCQX:ANRGF) announced today that it has completed its first draw down for $100,000 under its committed equity facility agreement with Haverstock Master Fund, Ltd. ("Haverstock") (the "CEF"). 327,332 common shares of Alter NRG ("Common Shares") were issued pursuant to the draw down (the "Draw Down") at a price of $0.3055 per Common Share.
The draw down notice issued on May 25, 2012, contemplated drawing down an aggregate amount of $500,000. However, based on the $0.32 minimum price set and the actual trading price of Common Shares following the draw down notice, pursuant to the terms of the CEF, the gross proceeds were $100,000. This was not unexpected as the minimum price is established to protect the Corporation.
Walter Howard, Chief Executive Officer of Alter NRG states that "The draw down on the CEF was not well received by our shareholders but was intended to reinforce the financial stability of Alter NRG in the eyes of commercial targets. As at March 31, 2012, the Corporation's working capital balance was $5.4 million and the Corporation expects to be cash flow positive in 2012. At this time the Corporation has no plans to make additional draws against the CEF".
The CEF, the short form base shelf prospectus dated June 28, 2011, the prospectus supplement dated August 26, 2011 and the pricing supplement dated June 5, 2012 (the "Offering Documents"), respecting the distribution of Common Shares pursuant to the CEF have been filed under Alter NRG's profile on SEDAR at www.sedar.com. The pricing supplement, as filed, contains a summary of the statutory rights of withdrawal and rescission with respect to the Common Shares issued pursuant to the Draw Down, as prescribed by the exemptive relief decision of the securities regulators in each of the provinces of Canada, except Quebec granted to the Corporation in respect of the CEF on May 20, 2011. Copies of the Offering Documents are also available on request without charge from the Chief Financial Officer of Alter NRG at Unit 215, 4000 - 4th Street S.E., Calgary, Alberta, T2G 2W3 (telephone (403) 244-0111 or by faxing a written request to (403) 244-6866). |
