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Centaurus Energy Inc. (Formerly Madalena Energy Inc.) Provides Corporate Update
Buenos Aires, Argentina--(Newsfile Corp. - February 10, 2020) - Centaurus Energy Inc. (TSXV: C...
About this update from Centaurus Energy Inc.
[{"type":"text","content":"Centaurus Energy Inc. (Formerly Madalena Energy Inc.) Provides Corporate UpdateBuenos Aires, Argentina--(Newsfile Corp. - February 10, 2020) - Centaurus Energy Inc. (TSXV: CTA) (OTCQX: CTARF) (\"Centaurus\" or the \"Company\") announces that it has entered in an exclusive negotiation agreement (\"Negotiation Agreement\") with KD Energy International Capital Limited (\"KD Energy\") to discuss a potential equity financing. The negotiations with KD Energy are being conducted on behalf of the Company under the direction of a special committee of independent directors through Peters & Co. Limited, who was retained to act as financial advisor to the independent special committee.Centaurus currently has a working capital loan agreement with Hispania Petroleum S.A. (\"Hispania\") and a convertible loan agreement with Hispania and KD Energy, both dated effective as of May 8, 2017 and amended on April 9, 2019 (together, the \"Loan Agreements\"). Jose Penafiel, Chief Executive Officer and a director of the Company, and Alejandro Penafiel, VP Growth and Capital, and also a director of the Company, are principals of KD Energy, and Jose David Penafiel is a director of Hispania.Prior to entering the Negotiation Agreement, the Company had received a notice letter from KD Energy stating that it may be in default in respect of certain provisions of the Loan Agreements, to which the Company responded, disputing these allegations and stating that the Loan Agreements remained in good standing. Under the terms of the Negotiation Agreement KD Energy and Hispania withdrew their original letter in its entirety, but reserved their rights and remedies under the Loan Agreements. During the term of exclusivity ending on February 17, 2020, the Company has agreed not to deliver any drawdown notices under the Loan Agreements. Prior to entering into the Negotiation Agreement, the Company secured a binding offer to re-finance the existing Loan Agreements on substantially the same terms, from Maglan Distressed Master Fund LP (\"Maglan\"), an affiliate of Maglan Capital LP, the Company's largest shareholder. This offer to re-finance from Maglan is open for acceptance by the Company until February 15, 2020.While negotiations are still ongoing, the board of directors has determined it necessary to disclose this information at this time, due to a planned filing o...