CALGARY, March 1, 2012 /PRNewswire via COMTEX/ —
NYSE Amex: BQI
Oilsands Quest Inc.
/quotes/zigman/440106/quotes/nls/bqi BQI
-5.74%
(“Oilsands Quest” or “the Company”) is continuing to work to
restructure its affairs while under the protection of the Companies’
Creditors Arrangement Act (Canada) (“CCAA”), with the assistance of a
Monitor appointed by the Alberta Court of Queen’s Bench (the “Court”).
With the approval and support of the Monitor, Oilsands Quest has
extended the deadline for offers under its current Solicitation
Process. As well, the Company is working to reopen the sale process for
the non-core Eagles Nest asset, following a default on the agreed
deposit by the purchaser. Finally, Oilsands Quest has been granted an
extension until May 18, 2012 to regain compliance with the listing
standards of the NYSE Amex.
Oilsands Quest is currently conducting a Court-approved process to
solicit offers to acquire, restructure or recapitalize the Company (the
“Solicitation Process”), assisted by its financial advisor, TD
Securities Inc. Binding offers under this process were originally due
in March 2012. Several confidentiality agreements have now been signed
with interested parties. Given the interest in the data room and the
time required for potential purchasers to conduct their due diligence,
Oilsands Quest is extending the deadline for offers under the process
to April 27, 2012.
In a development unrelated to the Solicitation Process, Oilsands Quest
is working with the Monitor to reopen the sale process for its Eagles
Nest asset. As previously announced, FAMA Capital Ltd. (“FAMA”) had
signed a Purchase and Sale Agreement, approved by the Court, to buy the
asset for CDN$7.0 million, with a deposit of CDN$400,000 due February
24, 2012. However, FAMA did not make the deposit and the agreement was
terminated. The details of the new sale process are still being
finalized.
Further to previous disclosure, Oilsands Quest received notice on
February 24, 2012 from the staff of the NYSE Amex LLC (the “Exchange”)
that the Company remains out of compliance with certain of the
Exchange’s continued listing standards as set forth in Part 10 of the
Exchange’s Company Guide. Specifically, the Exchange noted that the
Company is not in compliance with Section 1003(a)(iv) of the Company
Guide because the Company has sustained losses which are so substantial
in relation to the Company’s overall operations or its existing
financial resources, or its financial condition has become so impaired
that it appears questionable, in the opinion of the Exchange, as to
whether the Company will be able to continue operations and/or meet its
obligations as they mature.
The Company was afforded the opportunity to submit a plan of compliance
to the Exchange and on February 14, 2012 presented its most recent plan
to the Exchange. In its letter of February 24, 2012, the Exchange
notified Oilsands Quest that it accepted the Company’s plan of
compliance and granted the Company an extension until May 18, 2012 to
regain compliance with the continued listing standards. The Company
will be subject to periodic review by Exchange Staff during the
extension period. Failure to make progress consistent with the plan or
to regain compliance with the continued listing standards by the end of
the extension period could result in the Company being delisted from
the NYSE Amex.
Trading in the common shares of Oilsands Quest remains suspended while
the NYSE Amex determines whether to resume trading or to delist the
Company for failure to meet listing requirements.
About Oilsands Quest
Oilsands Quest Inc. (
www.oilsandsquest.com ) is exploring and developing oil sands permits and licences, located in
Saskatchewan and Alberta, and developing Saskatchewan’s first
commercial oil sands discovery.
Forward-looking statements
This news release includes certain statements that may be deemed to be
“forward-looking statements.” All statements, other than statements of
historical facts, included in this news release that address
activities, events or developments that management expects, believes or
anticipates will or may occur in the future are forward-looking
statements.
Forward-looking statements are statements other than relating to
historical fact and are frequently characterized by words such as
“plan”, “expect”, “project”, “intend”, “believe”, “anticipate”,
“estimate”, “potential”, “prospective” and other similar words or
statements that certain events or conditions “may” “will” or “could”
occur. Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
anticipated in the forward-looking statements, which include but are
not limited to the ability to raise additional capital, risks
associated with the Company’s ability to implement its business plan,
its ability to successfully submit a timely plan to its stakeholders
and the court under the CCAA and to resolve its operational, legal and
financial difficulties, the possible delisting of its securities from
NYSE Amex, risks inherent in the oil sands industry, regulatory and
economic risks, land tenure risks and those factors listed under the
caption “Risk Factors” in the Company’s Form 10-Q filed with the
Securities and Exchange Commission on December 9, 2011. The Company
undertakes no obligation to update forward-looking information if
circumstances or management’s estimates or opinions should change,
except as required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.
SOURCE Oilsands Quest Inc.
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