Pacific Asia China Energy Inc. Completes Sale to Green Dragon Gas
11 July 2008 - 7:00AM
Marketwired
KELOWNA, BRITISH COLUMBIA (TSX VENTURE: PCE) today announced the
closing of the plan of arrangement under which Green Dragon Gas
("Green Dragon"), through its wholly-owned direct and indirect
subsidiaries, GREKA China Ltd. and GREKA Acquisitions Ltd.
("GREKA"), acquired all of the Company's outstanding shares at a
price of CDN$0.35 per share in cash, for total cash proceeds of
approximately CDN$32.40 million.
The transaction was conducted pursuant to a plan of arrangement
under Section 288 of the British Columbia Business Corporations Act
and was approved by the Company's securityholders and the British
Columbia Supreme Court on July 3, 2008. The Company's shares will
be delisted from the TSX Venture Exchange in the near future. Each
of the current directors and officers of the Company have today
resigned.
The Company, through its transfer agent, has mailed instructions
to the Company's shareholders informing them of the procedure to
tender their shares for the cash consideration payable under the
arrangement. A copy of the letter of transmittal mailed to
shareholders has also been filed by the Company on the SEDAR
website at www.sedar.com.
Details regarding the terms of the transaction are set out in
the Company's management information circular dated May 29, 2008,
which was filed by the Company on the SEDAR website at the address
above.
Financial and Legal Advisors
Haywood Securities Inc. has acted as financial advisor to the
Company with respect to the transaction. The Company's legal
advisor is Blake, Cassels & Graydon LLP.
Green Dragon Gas
Green Dragon Gas (GDG.L) is a vertically integrated gas supplier
committed to providing optimum shareholder returns through the
execution of an environmentally progressive niche business plan.
GREKA is Green Dragon's wholly-owned subsidiary. GREKA is a gas
supplier based in China with a focus on the exploration,
development, production, distribution and sales of natural gas from
coal seams, commonly known as coal bed methane or CBM. It expects
to generate its own CBM supply from three projects in Shanxi
province, one project in Jiangxi province and one project in Anhui
province covering acreage holdings with an aggregate area of 6620
km3 and an estimated 18.1 Tcf of GIP in aggregate. GREKA expects to
distribute the CBM production in these projects to its customers
mainly in the form of compressed natural gas by trucks and to a
lesser extent via pipelines.
About the Company
Pacific Asia China Energy Inc. is a Canadian-based resource
company specializing in the strategic development of CBM projects
in China, CBM drilling and coal degasification through its 50
percent owned subsidiary, Pace Mitchell Drilling Corp. The common
shares of the Company are listed on the TSX Venture Exchange under
the symbol "PCE".
Forward-Looking Information
This press release contains "forward-looking information" that
is based on the Company's current expectations, estimates,
forecasts and projections. This forward-looking information
includes, among other things, statements with respect to the
potential acquisition of the Company by GREKA and the value of the
transaction, as well as the Company's plans, outlook and business
strategy. The words "may", "would", "could", "should", "will",
"likely", "expect", "anticipate", "intend", "estimate", "plan",
"forecast", "project" and "believe" or other similar words and
phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the Company's
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information. Such factors include, but are not
limited to, uncertainties related to the ability of the Company and
GREKA to satisfy the closing conditions to the transaction. This
factor and others should be considered carefully and readers should
not place undue reliance on such forward-looking information. The
Company disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new
information, future events or otherwise.
ON BEHALF OF THE BOARD
Devinder Randhawa, Chairman & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news
release.
Contacts: Pacific Asia China Energy Inc. Craig Christy Investor
Relations 1-877-979-7028 Email: info@pace-energy.com Website:
www.pace-energy.com
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