Gold Reserve Announces It Has Engaged Advisors to Arrange for Potential Financing in Connection With Its Previous Announced Potential Bid in Relation to the Sale of the Shares of PDV Holdings, Inc., Under the Delaware Proceedings
06 June 2024 - 7:33AM
Business Wire
Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold
Reserve” or the “Company”) announced today that it has
engaged advisors to arrange for potential debt and equity financing
in connection with the Company’s previously announced Potential Bid
(as defined below). There is no assurance that any such financing
will occur.
As previously disclosed in its May 27, 2024 press release, the
Company is evaluating and considering engaging in a potential
transaction (the “Potential Transaction”) in relation to the
sale of the common shares of PDV Holdings, Inc. (“PDVH”),
the indirect parent company of CITGO Petroleum Corp (the “Sale
Process”). The Potential Transaction may include the Company
submitting a bid (a “Potential Bid”), either solely or
jointly with certain undetermined parties, pursuant to the sales
and bidding procedures managed by the Special Master of the U.S.
District Court for the District of Delaware (the “Bidding
Procedures”).
This press release is neither an offer to sell nor a
solicitation of an offer to buy any securities of the Company. Any
such offering, if and when made, will not be registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable
exemption from registration requirements of such act.
On Behalf of the Board of Directors
Paul Rivett Executive Vice-Chairman
Cautionary Statement Regarding Forward-Looking statements
This release contains “forward-looking statements” within the
meaning of applicable U.S. federal securities laws and
“forward-looking information” within the meaning of applicable
Canadian provincial and territorial securities laws and state Gold
Reserve’s and its management’s intentions, hopes, beliefs,
expectations or predictions for the future. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management at this
time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. They are frequently
characterized by words such as "anticipates", "plan", "continue",
"expect", "project", "intend", "believe", "anticipate", "estimate",
"may", "will", "potential", "proposed", "positioned" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements contained in this
press release include, but are not limited to, statements relating
to any potential debt or equity financing, the Potential
Transaction and the Potential Bid.
We caution that such forward-looking statements involve known
and unknown risks, uncertainties and other risks that may cause the
actual events, outcomes or results of Gold Reserve to be materially
different from our estimated outcomes, results, performance, or
achievements expressed or implied by those forward-looking
statements, including but not limited to: failure to entering into
definitive documentation in connection with the financing and that
any financing will be made available in accordance with its terms
or otherwise; the failure of the Company to negotiate and/or submit
a Potential Transaction, including as a result of failing to obtain
sufficient equity and/or debt financing as contemplated herein or
otherwise including with respect to the funding of any expenses in
connection with any Potential Transaction; that any Potential Bid
submitted by the Company will not be selected as a “Successful Bid”
under the Bidding Procedures, and if selected may not close due to
the Sale Process not being completed, including as a result of the
United States Office of Foreign Asset Control (“OFAC”) not
granting an authorization in connection with any potential sale of
PDVH shares and/or whether it changes its decision or guidance
regarding the Sale Process; failure of the Company or any other
party to obtain any required shareholder and/or regulatory
approvals (including approvals of the TSX Venture Exchange) for, or
satisfy other conditions to effect, any transaction resulting from
a Potential Bid; that the Company forfeit any cash amount deposit
made due to failing to complete a Potential Bid or otherwise; that
the Company may be obligated to pay the fees but be unable to close
the Potential Bid and it may not have sufficient funds to pay such
fee; that the making of the Potential Transaction or any
transaction resulting therefrom may involve unexpected costs,
liabilities or delays; that, prior to or as a result of the
completion of any transaction contemplated by a Potential
Transaction, the business of the Company may experience significant
disruptions due to transaction related uncertainty, industry
conditions or other factor; the ability to enforce the writ of
attachment granted to the Company; the timing set for various
reports and/or other matters with respect to the Sale Process may
not be met; the ability of the Company to otherwise participate in
the Sale Process (and related costs associated therewith; the
amount, if any, of proceeds associated with the Sale Process; the
competing claims of certain creditors, the “Other Creditors” (as
detailed in the applicable court documents filed with the Delaware
Court) of Venezuela and the Company, including any interest on such
creditors’ judgements and any priority afforded thereto;
uncertainties with respect to possible settlements between
Venezuela and other creditors and the impact of any such
settlements on the amount of funds that may be available under the
Sale Process; and the proceeds from the Sale Process may not be
sufficient to satisfy the amounts outstanding under the Company’s
September 2014 arbitral award and/or corresponding November 15,
2015 U.S. judgement in full and the ramifications of bankruptcy
with respect to the Sale Process and/or the Company’s claims,
including as a result of the priority of other claims. This list is
not exhaustive of the factors that may affect any of the Company’s
forward-looking statements. For a more detailed discussion of the
risk factors affecting the Company’s business, see the Company’s
Annual Information Form on Form 40-F and Management’s Discussion
& Analysis for the year ended December 31, 2023, the
Management’s Discussion & Analysis for the period ended March
31, 2024 and other reports that have been filed on SEDAR+ and are
available under the Company’s profile at www.sedarplus.ca and which
have been filed on EDGAR and are available under the Company’s
profile at www.sec.gov/edgar.
Investors are cautioned not to put undue reliance on
forward-looking statements. All subsequent written and oral
forward-looking statements attributable to Gold Reserve or persons
acting on its behalf are expressly qualified in their entirety by
this notice. Gold Reserve disclaims any intent or obligation to
update publicly or otherwise revise any forward-looking statements
or the foregoing list of assumptions or factors, whether as a
result of new information, future events or otherwise, subject to
its disclosure obligations under applicable rules promulgated by
the Securities and Exchange Commission and applicable Canadian
provincial and territorial securities laws.
NEITHER THE 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240605085112/en/
Gold Reserve Inc. Contact Jean Charles Potvin 999 W. Riverside
Ave., Suite 401 Spokane, WA 99201 USA Tel: (509) 623-1500 Fax:
(509) 623-1634
Gold Reserve (TSXV:GRZ)
Historical Stock Chart
From Oct 2024 to Nov 2024
Gold Reserve (TSXV:GRZ)
Historical Stock Chart
From Nov 2023 to Nov 2024