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PETRO VERDE ANNOUNCES STRUCTURED DEBT FINANCING
Calgary, Alberta, Canada – June 21, 2013 – Petro Verde Energy Inc. (“Petro Verde”) announces the signing of a non-binding letter of intent with Darius Capital Company, a Nevada Corporation (“Darius”). Up to a U.S. $20 million loan facility will be made available to Petro Verde from Darius, subject to a number of conditions including completion of due diligence and negotiation of mutually acceptable formal agreements. Final approval of both Darius and Petro Verde will also be required.
The loan facility will be for a 10-year term with 10% interest being initiated in year 3 of the loan. Share purchase warrants, to be negotiated, will also be issued by Petro Verde to Darius and its investors. Darius will be underpinning the loan value to Petro Verde with approximately U.S. $65 million of Yield-Enhanced Syncing notes (“YESnotesTM“) to be issued to qualifying investors by Darius. The YESnotesTM will be partly backed by life settlements acquired by Darius using a proprietary actuarial program for enhanced yields.
Jeff Arsenych, President & CEO or Petro Verde, stated “The innovative financing from Darius will allow Petro Verde to expand our investment reach without the typical restrictions of conventional debt capital. Conventional debt will remain a viable option in additional to the Darius financing, but at times when it makes sense for us to do this.” "Petro Verde is exactly the type of opportunity Darius Capital is seeking given their experienced management and significant market opportunity," remarked John A. Beyer CEO of Darius Capital Company.
Petro Verde Energy Inc. is a private oil company based in Calgary, Alberta. Petro Verde’s corporate strategy is to develop established oil resources using successful risk management practices and proven new technologies. The property market in North America is currently very robust with many assets being offered for sale by their operators. Also, the specific targeting of mature waterfloods for acquisition, as well as international joint ventures, will also provide many transaction opportunities for production upside and cost mitigation. Jeff Arsenych, CEO, has co-founded four prior oil companies that were successful with oil development.
For more information please contact:
Jeff Arsenych Allan MacRae
President & CEO President & CEO – International
+1 403 807 8444 +1 403 875 4830