|Mon Apr 19, 2010|
Oracle Energy arranges one-for-10 share rollback
|2010-04-19 21:25 ET - News Release|
Mr. Nasim Tyab reports
Oracle Energy Corp. intends to consolidate its issued and outstanding common shares on the basis of 10 preconsolidation shares for one postconsolidation share. Oracle does not plan to change its corporate name in conjunction with the consolidation.
The consolidation remains subject to the approval of both the TSX Venture Exchange and Oracle's common shareholders. Oracle anticipates that it will soon call a special meeting of its shareholders to approve the consolidation. If the consolidation is approved at the meeting, the directors will have the sole discretion to implement the consolidation, provided that the consolidation ratio is no more than one postconsolidated share for up to 10 preconsolidated shares, subject to the approval of the exchange. As of the date hereof, Oracle has 61,057,415 common shares issued and outstanding. After giving effect to the proposed Consolidation, Oracle will have approximately 6,105,741 common shares issued and outstanding. The exact number of postconsolidated shares will vary depending on the treatment of fractional shares, which will occur when each shareholder's holdings in Oracle are consolidated. Outstanding stock options and warrants will also be adjusted by the consolidation ratio and the respective exercise prices of outstanding stock options and warrants will be adjusted accordingly.
Oracle's management believes that further equity financing is required in order for Oracle to finance its current working capital requirements and for future business purposes. It is management's opinion that Oracle's existing issued and outstanding share capital is not conducive to completing such additional equity financing and that the Consolidation is required in order to attract new equity investment in Oracle.
We seek Safe Harbor.
ON BEHALF OF THE BOARD
The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this news release. Some of the statements contained in this release are forward-looking statements. Forward-looking statements include but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements including the potential that the Company's projects will experience technical and mechanical problems, geological conditions in the reservoir may not result in commercial level of oil and gas production, changes in product prices and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. The information contained herein does not constitute an offer of securities for sale in the United States, United Kingdom, Canada, Japan or Australia.