International Sovereign Energy Corp. June 30, 2012 Results with Business Update
This news release is not for dissemination in the United States or to U.S. persons
Calgary, Alberta CANADA, August 30, 2012 /FSC/ - International Sovereign Energy Corp. (ISR.H - TSX Venture)("ISR" or the "Company") announces its operating and financial results for the three months ended March 31, 2012. These filings are available for review at http://www.sedar.com
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Balance sheet Highlights March 31, December 31,
2012 2011
$ $
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Cash 4,096,951 3,091,739
Accounts receivable 93,501 431,337
Investment held for sale 4,310,668 3,767,253
Assets held for sale - 1,378,927
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Accounts payable and 310,136 726,723
accrued liabilities
Liabilities held for sale - 1,684,264
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Shareholders' Equity 8,212,063 6,394,544
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Highlights:
The Company completed the sale of all its interest in land and production, of its Marwayne property, on January 16, 2012.
Shares Adjustment
The shares issued by Legend Oil and Gas Ltd ("Legend"), to the Company as partial consideration of the purchase price are to be adjusted if the volume weighted average trading price of Legend shares falls below certain price thresholds at the end of certain periods, within two months of the registration becoming effective, which happened on March 17, 2012. At the end of the restriction period, May 17, 2012 the total amount of shares issuable under the volume weighted average trading price provision to the Company is 21,350,247, bringing the total number of shares owned by ISR of Legend to 24,902,763 or 32.5% of outstanding shares.
The Company received additional shares in accordance with the sale of the oil assets to Legend, as previously reported. These additional shares, combined with the initial issue resulted in a 32.5% interest in Legend. However, the Company considers this holding as one held for sale as there is no intention to assume a management role in Legend or to request board representation.
Wi2Wi Corporation:
International Sovereign Energy Corp. ("ISEC") has announced that it has entered into an Arrangement Agreement dated July 6, 2012 with Wi2Wi Corporation ("Wi2Wi") pursuant to which the Company will acquire all of the issued and outstanding shares of Wi2Wi by way of a plan of arrangement pursuant to the Canada Business Corporations Act (the "Transaction"). The Transaction is considered a reverse takeover under the policies of the TSX Venture Exchange (the "TSXV") and is subject to the approval of the Ontario Superior Court of Justice, the TSXV and shareholders of the Company and Wi2Wi. This transaction was previously announced on March 12, 2012.
For further information, please contact:
Sharad Mistry
Chief Executive Officer
Chief Financial Officer
T: [416] 844-7955
F: [403] 264 - 7035
E: smistry@isove.com
Reader Advisories
Forward-Looking Statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (http://www.sedar.com).
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to, among other things, the Proposed Transaction. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. Completion of the Proposed Transaction described herein is dependent on a number of factors and is subject to a number of risks and uncertainties, and it is not certain that the Proposed Transaction will be completed. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Com0pany`s or Wi2Wi's business, general business, economic and competitive uncertainties and delay or failure to receive board, shareholder or regulatory approvals.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release is not for dissemination in the United States or to U.S. persons.
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Source: International Sovereign Energy Corp. (ISR.H - TSX-V) http://www.isove.com
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