Business
New Zealand Energy Announces Change of Holding Company Structure, Amendment to Working Capital Facility and Operational Updates
Wellington, New Zealand--(Newsfile Corp. - January 7, 2015) - New Zealand Energy Corp. (TSXV: ...
About this update from New Zealand Energy Corp.
[{"type":"text","content":"New Zealand Energy Announces Change of Holding Company Structure, Amendment to Working Capital Facility and Operational UpdatesWellington, New Zealand--(Newsfile Corp. - January 7, 2015) - \nNew Zealand Energy Corp. (TSXV: NZ) (OTCQX: NZERF) (\"NZEC\" or the \"Corporation\") , announced today that to save cost and simplify administration it has moved the holding company for its New Zealand subsidiary companies from \nSingapore to New Zealand. \n\nThe process has been undertaken by sale of the New Zealand subsidiary companies' shares held by NZ Holdings Pty Ltd to NZEC Holdings Ltd (both wholly owned subsidiaries of NZEC) and by the transfer of all debt obligations and assets and \nliabilities of NZ Holdings Pty Ltd to either NZEC or NZEC Holdings Limited. These amendments have been made operative as of 5th January 2015. \n\nThe process has involved an amendment and restatement of the Working Capital Facility Agreement (the \"Facility\") with New Dawn Energy Limited (\"New Dawn\") to replace NZ Holdings Pty Ltd with NZEC Holdings Limited as \nGuarantor. \n\n\"Moving the holding company for our New Zealand subsidiaries from Singapore to New Zealand should reduce our audit and financial administration costs by approximately NZ$50,000 per annum and is a part of our ongoing cost reduction and \nrightsizing activities,\" Chief Executive Officer David Robinson said. \n\nAs a further amendment, New Dawn has been granted an option to accept repayment of debt due by the issue of common shares in the Company. Mr Robinson said \"the amendment was requested by New Dawn and agreed by NZEC on the basis that it \nprovides additional flexibility regarding repayment options in respect of part or all of the debt. The exercise of the option is subject to compliance with the requirements of the TSX Venture Exchange and Canadian securities law for the issue of \nshares under a prospectus exemption.\" \n\nThe number and deemed value of the shares which may be issued would be determined by reference to the volume weighted average price at which NZEC shares have traded in the 60 days immediately prior to the \ncalculation date (being the date falling 5 days before the proposed date for issue of the shares) and in any event shall not be less than the lowest price as permitted by the TSX (5 cents). \n\nIf exercised by New Dawn, the debt to share conversio...