VANCOUVER, B.C. – Hillcrest Petroleum Ltd. (the “Company” or “Hillcrest”), is pleased to announce that will make an application to the TSX Venture Exchange (the “Exchange”) for approval of the implementation of an early warrant exercise incentive program (the “Incentive Program”) intended to encourage the early exercise of up to 24,166,466 outstanding common share purchase warrants (the “Eligible Warrants”) of the Company held by warrant-holders.
Each Eligible Warrant is currently exercisable to acquire one common share of the Company at a price of $0.05 per share. Of the 24,166,466 Eligible Warrants, 1,000,000 Eligible Warrants will expire on November 1, 2020, 20,944,446 Eligible Warrants will expire on December 4, 2020, and 2,122,000 Eligible Warrants will expire on May 10, 2021.
In order to encourage the early exercise of such Eligible Warrants, the Company will be seeking approval of the Exchange to an amendment to the terms of the Eligible Warrants to enable the holders to receive a New Warrant (as defined and described below) for each Eligible Warrant exercised prior to August 1, 2020 (the “New Warrant Expiry Date”) at the price of $0.05 per Eligible Warrant.
To be eligible for the Incentive Program, the holder of the Eligible Warrant must complete and deliver an accredited investor certificate to the Company, in such form as satisfactory to the Company, or otherwise the Company must be satisfied that the distribution of New Warrants (as defined below) to such holder would be exempt from prospectus requirements.
Subject to the receipt of formal approval of the Exchange to the incentive program and the resulting amendment to the Eligible Warrants, each holder of an Eligible Warrant who elects to exercise their Eligible Warrant at the price of $0.05 prior to the New Warrant Expiry Date of the incentive program will receive a warrant (a “New Warrant”). Each New Warrant will allow the holder to acquire an additional common share of the Company at a price of $0.10 per share for a period of two years from issuance. The New Warrants, and any shares issued upon exercise thereof, will be subject to a four-month hold period. If an Eligible Warrant holder chooses not to exercise their Eligible Warrants by the New Warrant Expiry Date, the Eligible Warrants will continue to be exercisable for common shares on the same terms that previously existed, as will the warrants held by insiders of the Company and pro group members.
ABOUT THE COMPANY
Hillcrest is a Canadian oil and gas producer, which to complement its oil and gas production, is pursuing opportunities related to clean energy technology with potential to substantially reduce greenhouse gas emissions. Hillcrest holds multiple wells on two projects in the province of Saskatchewan, and intends to add a green energy asset to its energy production portfolio through its 50% ownership in ALSET Innovations Inc., a technology partnership with rights to exclusively license and market innovative efficient power generation and electric motor technologies in the USA and to exclusively market this technology in the EU.
ON BEHALF OF THE BOARD
Chief Executive Officer and Director
For more information on Hillcrest Petroleum Ltd., contact Donald Currie toll free at 1-855-609-0006 or visit the Company’s website at www.hillcrestpetroleum.com.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary Statement Regarding “Forward-Looking” Information
Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. This forward-looking information is provided as of the date of this news release. The forward-looking information reflects our current expectations and assumptions and is subject to a number of known and unknown risks, uncertainties and other factors, which may cause actual results, performance, or achievements to be materially different from any anticipated future results, performance or expectations expressed or implied by the forward-looking information. No assurance can be given that these assumptions will prove correct. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Investors are advised to consider the risk factors under the heading “Risks and Uncertainties” in the Company’s MD&A for the year ended December 31, 2021, available at www.sedar.com for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance, or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.