CALGARY - Kodiak Energy, Inc. (OTCBB:KDKN) has reduced its debt and gained a majority stake in Ore-More Resources Inc. (OTCBB: OMORF) in exchange for Kodiak's shares in Cougar Energy, Inc.
Calgary-based Cougar is focused on Canadian oil and gas in the Trout area of central Alberta and the Horn River Basin in northeastern British Columbia.
Ore-More issued about 12.3 million of its common shares to Kodiak and cancelled US$1.3 million of debt issued by Kodiak in return for Kodiak's shares of Cougar. Ore-More also cancelled 12.2 million of its existing shares.
As a result, Kodiak now owns about 70 per cent of Ore-More's shares and effectively remains Cougar's indirect parent company through Ore-More.
"As a result of this transaction with Ore-More, the cancelling of the debt places us in a position that, with the cash flow and reserve value of the assets, we can immediately move to conventional debt financings," Kodiak president William Tighe said in a statement.
"Currently, we are negotiating terms and conditions with several possible lenders. Overall, we anticipate a positive outcome for our shareholders."
Kodiak Energy gains large stake in Ore-More in return for Cougar Energy
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Published on
January 27, 2010
- Published on February 24, 2010
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The Canadian Press ~ The News
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