Calgary, Alberta--(Newsfile Corp. - March 27, 2020) - Centaurus Energy Inc. (TSXV: CTA) (OTCQX: CTARF) ("Centaurus" or the "Company") announces that it has received a notice of default and reservation of rights (the "Notice") from KD Energy International Capital Limited ("KD Energy") and Hispania Petroleum S.A. ("Hispania", and together with KD Energy, the "Old Lenders"). In the Notice, the Old Lenders allege that the Company is in default of the terms of the Amended and Restated Convertible Loan Agreement made effective as of April 7, 2019, among the Corporation and the Lenders (the "Old Capex Loan"), and the Loan Agreement made between the Company and Hispania dated May 8, 2019, as amended on April 7, 2019 (the "Old Working Capital Loan", and together with the Capex Loan, referred to as the "KD Agreements"). KD Energy is controlled by Alejandro Penafiel and Jose Penafiel, who were officers of the Company until their employment was terminated on March 24, 2020, and Jose Penafiel is a director of Hispania. In addition, Alejandro Penafiel and Jose Penafiel have ceased to be directors of the Company in accordance with the terms of their employment agreements.
Centaurus disputes the allegations of default set out in the Notice, some of which are alleged to have occurred while Alejandro Penafiel and Jose Penafiel were officers of the Company. The Company has drawn US$2 million under the KD Agreements.
As previously announced on March 25, 2020, the Company has entered into an agreement with Maglan Capital Distressed Fund LP ("Maglan") to extend convertible and non-convertible loan facilities (the "Maglan Facilities"), providing the Company with access of up to US$23 million for capital expenditure and working capital purposes. The Maglan Facilities will have substantially similar terms as the KD Agreements and are subject to regulatory approval including approval of the TSX Venture Exchange.
About Centaurus Energy
Centaurus is an independent upstream oil and gas company with both conventional and unconventional oil and gas operations in Argentina. The Company's shares trade on the TSX Venture Exchange under the symbol CTA and on the OTCQX under the symbol CTARF.
For further information please contact:
David Tawil
Interim Chief Executive Officer
email: info@ctaurus.com
phone: (403) 262-1901
Reader Advisories
Forward Looking Information Disclaimer
The information in this news release contains certain forward-looking statements. These statements relate to future events or the Company's future performance, in particular, but not limited to, expectations that the Company will be able to obtain respective regulatory consents and complete definitive agreements with Maglan Capital Distressed Fund LP to govern the Maglan Facilties. All statements other than statements of historical fact may be forward-looking statements. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. The forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements. Investors are encouraged to review and consider the additional risk factors set forth in the Company's Annual Information Form, which is available on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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