WesCan Energy Corp. press release
Blackpool completes re-financing
TSXV - TSX Venture Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
CALGARY, Dec. 28 /CNW/ - Blackpool Exploration Ltd. (the "Company" or "Blackpool") (BPX.A - TSX Venture Exchange) announces that the Company has entered agreements to borrow a total of $2,000,000.00 for the purpose of paying out an existing bridge financing. The Company has borrowed $1,800,000.00 from The K2 Principal Fund L.P. ("K2"), an Ontario limited partnership and $100,000.00 from each of Ronald W. Shepherd and Garry T. Tether who are directors of the Company. The loans bear interest at 12% per annum and will be payable on or before June 22, 2006. As security for the loan from K2, the Company has granted a debenture covering all assets of the Company and of the Company's wholly owned subsidiary, C2 Energy Inc. The debenture is subordinated to the security interest of Blackpool's principal lender, ATB Financial, which has provided a $3,100,000.00 operating line of credit. The loans from the directors are unsecured and the directors have executed postponement agreements in favour of both ATB Financial and K2. In consideration of the loan, the Company has issued to K2 a total of 400,000 free-trading common shares, subject to a four (4) month hold under applicable securities laws.
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