Ivanhoe Energy files early warning report
CALGARY, March 19, 2012 /PRNewswire/ – Ivanhoe Energy Inc. (TSX: IE; NASDAQ:
IVAN) today issued an early warning report, pursuant to the early
warning requirements of National Instrument 62-103 with respect to the
common shares in the capital of Ivanhoe Energy (the “Common Shares”).
In accordance with the early warning requirements, applicable Canadian
securities laws and prior releases and filings by Ivanhoe Energy,
Ivanhoe Energy is required to report certain information respecting
securities held by Robert M. Friedland (“Mr. Friedland”).
Pursuant to an amending agreement, dated March 14, 2012, amongst Ivanhoe
Capital Finance Ltd. (“Ivanhoe Capital”) and Ivanhoe Energy, which
amended that certain loan agreement, dated December 30, 2011, Mr.
Friedland acquired, indirectly through his wholly-owned corporation,
Ivanhoe Capital, the right to convert, at any time prior to maturity of
the loan, the then outstanding principal into Common Shares at a
conversion rate of one whole Common Share for each CAD$0.96 of
principal amount then outstanding, subject to customary adjustments
(the “Conversion Right”). The conversion price of CAD$0.96 was
calculated with reference to the volume weighted average trading price
of the Common Shares on the Toronto Stock Exchange for the five
consecutive trading days preceding March 12, 2012. The exercise of the
Conversion Right may result in up to 10,484,375 Common Shares being
issued to Ivanhoe Capital, which would represent 2.96% of the
outstanding Common Shares (taking account of the conversion).
The Conversion Right was granted as consideration for the subordination
of an existing loan to a new third party facility and no new proceeds
were received by Ivanhoe Energy.
As of March 16, 2012, Ivanhoe Energy had outstanding 348,972,761 Common
Shares, which number includes those securities held by Mr. Friedland
which are convertible into Common Shares within 60 days. Mr. Friedland
currently, directly and indirectly, owns 54,045,058 Common Shares,
representing approximately 15.49% of the issued share capital of
Ivanhoe Energy. If the Conversion Right is exercised for the maximum
amount permissible, it will result in Mr. Friedland owning 64,529,433
Common Shares, representing approximately 17.95% of the issued capital,
taking account of the conversion. The values reported with respect to
Mr. Friedland’s holdings in Ivanhoe Energy reflect Common Shares
currently held by him and those securities convertible into Common
Shares within 60 days. The transaction occurred by private agreement.
For further information and to obtain a copy of the early warning report
filed under applicable Canadian provincial securities legislation in
connection with the transactions hereunder please go to the Ivanhoe
Energy profile on SEDAR website www.sedar.com or visit Ivanhoe Energy’s website at www.ivanhoeenergy.com, or contact the company at: +1.403.261.1700.
Ivanhoe Energy is an independent international heavy oil exploration and
development company focused on pursuing long-term growth in its
reserves and production. Core operations are in Canada, Ecuador, China
and Mongolia, with business development opportunities worldwide.
Ivanhoe Energy trades on The Toronto Stock Exchange with the ticker
symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.
For more information about Ivanhoe Energy please visit www.ivanhoeenergy.com.
FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include, but
are not limited to, statements concerning the potential benefits of
Ivanhoe Energy’s heavy oil upgrading technology, the potential for
commercialization and future application of the heavy oil upgrading
technology and other technologies, statements relating to the continued
advancement of Ivanhoe Energy’s projects, the potential for successful
exploration and development drilling, dependence on new product
development and associated costs, statements relating to anticipated
capital expenditures, the necessity to seek additional funding,
statements relating to increases in production and other statements
which are not historical facts. When used in this document, the words
such as “could,” “plan,” “estimate,” “expect,” “intend,” “may,”
“potential,” “should,” and similar expressions relating to matters that
are not historical facts are forward-looking statements. Although
Ivanhoe Energy believes that its expectations reflected in these
forward-looking statements are reasonable, such statements involve
risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from these
forward-looking statements include the potential that the Company’s
projects will experience technological and mechanical problems, new
product development will not proceed as planned, the HTL technology to
upgrade bitumen and heavy oil may not be commercially viable,
geological conditions in reservoirs may not result in commercial levels
of oil and gas production, the availability of drilling rigs and other
support services, uncertainties about the estimates of reserves, the
risk associated with doing business in foreign countries, environmental
risks, changes in product prices, our ability to raise capital as and
when required, competition and other risks disclosed in Ivanhoe
Energy’s 2011 Annual Report on Form 10-K filed with the U.S. Securities
and Exchange Commission on EDGAR and the Canadian Securities
Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.