Welcome!

News Feed Item

Canadian Quantum Announces Completion of Private Placements and Asset Acquisition, and Appointment of New Director

CALGARY, ALBERTA -- (Marketwired) -- 05/26/14 -- Canadian Quantum Energy Corporation ("Canadian Quantum" or the "Company") (TSX VENTURE:CQM) announced today that, further to its press releases dated April 25, 2014 and May 6, 2014, pursuant to the investment agreement (the "Investment Agreement") with Lang International Holdings Limited, a company registered in the British Virgin Islands (""Lang"), and Douglas Brett, the President and Chief Executive Officer of the Company, the Company completed the first tranche of its previously announced private placement offering (the "Equity Private Placement") of common shares of the Company ("Common Shares"), subject to TSX Venture Exchange final approval. Pursuant to the closing of the first tranche of the Equity Private Placement, Lang purchased 11,660,000 Common Shares at a price of $0.10 per Common Share for gross proceeds of $1,166,000. An additional tranche of the Equity Private Placement, pursuant to which a third party is anticipated to purchase 1,090,000 Common Shares, is expected to occur on or about May 27, 2014.

The proceeds from the Equity Private Placement will be used for the exploration program on the Company's Alexander project and for general working capital. In addition, upon the closing of the first tranche of the Equity Private Placement, the Company repaid the previously announced short term loan from Lang in the amount of $350,000.

Concurrently with the closing of the Equity Private Placement, a subsidiary of Canadian Quantum purchased certain seismic equipment from an associate of Lang at a purchase price of 10,971,000 Common Shares, that were issued to Lang, at a deemed price of $0.10 per Common Share (the "Asset Acquisition"), subject to TSX Venture Exchange final approval.

Concurrently with the closing of the Equity Private Placement, Canadian Quantum also completed the previously announced private placement offering (the "Debenture Private Placement") of series 1 convertible secured debentures in the aggregate principal amount of $1,870,479.46 (the "Series 1 Debentures"), subject to TSX Venture Exchange final approval. Pursuant to the Debenture Private Placement, Lang purchased Series 1 Debentures in the principal amount of $935,239.73 and the holders of the previously outstanding debentures purchased Series 1 Debentures in the principal amount of $935,239.73, by settling the corresponding amount of such outstanding debentures.

The proceeds from the Debenture Private Placement will be used for general working capital and to repay the remaining portion of the principal amount and accrued interest owing on the outstanding debentures in the aggregate amount of $935,239.73 and therefore, upon the closing of the Debenture Private Placement, the outstanding debentures were fully paid and terminated.

The Series 1 Debentures are secured against the personal property of the Company and substantially all of the Company's interest in the Alexander Project, convertible at a price of $0.12 per Common Share, mature on September 30, 2015 and will bear interest at a rate of 10% per annum. The holder of a Series 1 Convertible Debenture will rank on a pari passu and equal basis with any other holder of a Series 1 Convertible Debenture, any holder of a series 2 convertible debenture that may be issued in the future and Mr. Brett with respect to the previously announced outstanding loan in the amount of $235,000.

All of the securities issued in connection with the Equity Private Placement, the Asset Acquisition and the Debenture Private Placement are subject to a hold period that expires on September 23, 2014.

Lang acquired 11,660,000 Common Shares under the Equity Private Placement, 10,971,000 under the Asset Acquisition and Series 1 Debentures in the principal amount of $935,239.73 under the Debenture Private Placement and upon completion of the private placements and the acquisition, Lang will own or control 22,631,000 Common Shares or approximately 39.49% of the total issued and outstanding Common Shares and Series 1 Debentures in the principal amount of $935,239.73. Assuming the conversion of such Series 1 Debentures, Lang would own or control 30,424,664 Common Shares or approximately 46.74% of the total issued and outstanding Common Shares. The purchase of the securities by Lang was made for investment purposes. Lang may increase or decrease its investment in Canadian Quantum depending on market conditions or any other relevant factors.

Following the closing of the above noted transactions, and pursuant to the terms of the Investment Agreement, Mr. Stephen Buscher, as the nominee of Lang, was appointed to the Board of Directors of the Company.

Mr. Buscher originally worked in banking, with an emphasis on Russian oil and gas, where he worked for over twenty years as the co-head of the Moscow office for Lazard Freres and Merrill Lynch. He also founded and co-managed Eurasia Capital Partners, a private M&A advisory boutique with offices in Moscow and London. Since leaving banking, Stephen has acted as the CFO of the Russian independent oil company Urals Energy, which he successfully listed on the London AIM in 2005, the CFO of Terralliance, a global exploration company privately owned by Kleiner Perkins and Goldman Sachs, and CEO of Navitas Petroleum, the exploration subsidiary of RussNeft, a Russian oil major owned by M. Gutseriev, Sistema and Glencore. He is currently the CFO of Story First Ltd., a diversified media investment holding venture, and a member of the Board of Directors of Urals Energy.

About Canadian Quantum

Canadian Quantum is actively pursuing oil and gas opportunities in Western Canada and continues to hold various interests in approximately 174,000 gross acres covered by four permits in the St. Lawrence Lowlands, Quebec Utica Shale Play.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Canadian Quantum's business, and the proposed transactions. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Canadian Quantum's control, including the ability of Canadian Quantum to satisfy the conditions to completion of the proposed transactions, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Canadian Quantum believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Canadian Quantum does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Contacts:
Douglas Brett, President & CEO
(403) 532-8543
[email protected]
www.canadianquantum.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addresse...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Transformation Abstract Encryption and privacy in the cloud is a daunting yet essential task for both security practitioners and application developers, especially as applications continue moving to the cloud at an exponential rate. What are some best practices and processes for enterprises to follow that balance both security and ease of use requirements? What technologies are available to empower enterprises with code, data and key protection from cloud providers, system administrators, inside...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...