New Zealand Energy Corp (NZEC) has reached an agreement with Vliet Financing B.V. to settle its outstanding CAD$2,000,000 loan plus CAD$753,997 in accrued interest. Under the agreement dated May 8, 2025, NZEC will pay CAD$500,000 and issue 1,000,000 common shares to Vliet to terminate the loan. If NZEC fails to make payments by July 31, 2025, Vliet will extend the loan maturity to September 20, 2026. The loan has been amended to be non-convertible. The agreement requires approval from the TSX Venture Exchange and partial/full revocation of a cease trade order issued by the British Columbia Securities Commission. As Vliet is controlled by NZEC's Chairman Frank Jacobs, the transaction qualifies as a related party transaction but meets exemption requirements.
New Zealand Energy Corp (NZEC) ha raggiunto un accordo con Vliet Financing B.V. per saldare il prestito in sospeso di CAD$2.000.000 più CAD$753.997 di interessi maturati. Secondo l'accordo datato 8 maggio 2025, NZEC pagherà CAD$500.000 e emetterà 1.000.000 di azioni ordinarie a Vliet per estinguere il prestito. Se NZEC non effettuerà i pagamenti entro il 31 luglio 2025, Vliet estenderà la scadenza del prestito al 20 settembre 2026. Il prestito è stato modificato per essere non convertibile. L'accordo richiede l'approvazione della TSX Venture Exchange e la revoca parziale o totale di un ordine di sospensione delle negoziazioni emesso dalla British Columbia Securities Commission. Poiché Vliet è controllata dal presidente di NZEC, Frank Jacobs, la transazione è considerata un'operazione con parti correlate ma soddisfa i requisiti di esenzione.
New Zealand Energy Corp (NZEC) ha llegado a un acuerdo con Vliet Financing B.V. para saldar su préstamo pendiente de CAD$2,000,000 más CAD$753,997 en intereses acumulados. Según el acuerdo fechado el 8 de mayo de 2025, NZEC pagará CAD$500,000 y emitirá 1,000,000 de acciones ordinarias a Vliet para cancelar el préstamo. Si NZEC no realiza los pagos antes del 31 de julio de 2025, Vliet extenderá el vencimiento del préstamo hasta el 20 de septiembre de 2026. El préstamo ha sido modificado para ser no convertible. El acuerdo requiere la aprobación de la TSX Venture Exchange y la revocación parcial o total de una orden de suspensión de operaciones emitida por la Comisión de Valores de Columbia Británica. Dado que Vliet está controlada por Frank Jacobs, presidente de NZEC, la transacción se considera una operación con partes relacionadas pero cumple con los requisitos de exención.
New Zealand Energy Corp(NZEC)는 Vliet Financing B.V.와 미지급된 2,000,000 캐나다 달러 대출금 및 753,997 캐나다 달러의 누적 이자를 정산하기로 합의했습니다. 2025년 5월 8일자 계약에 따라 NZEC는 대출을 종료하기 위해 Vliet에 500,000 캐나다 달러를 지급하고 보통주 1,000,000주를 발행할 예정입니다. 만약 NZEC가 2025년 7월 31일까지 지급하지 못할 경우, Vliet는 대출 만기를 2026년 9월 20일까지 연장할 것입니다. 대출은 전환 불가능하도록 수정되었습니다. 이 계약은 TSX 벤처 거래소의 승인과 브리티시컬럼비아 증권위원회가 발행한 거래중지 명령의 일부 또는 전면 해제를 필요로 합니다. Vliet는 NZEC의 회장 Frank Jacobs가 통제하고 있어 관련 당사자 거래에 해당하지만 면제 요건을 충족합니다.
New Zealand Energy Corp (NZEC) a conclu un accord avec Vliet Financing B.V. pour régler son prêt impayé de 2 000 000 CAD plus 753 997 CAD d'intérêts accumulés. Selon l'accord daté du 8 mai 2025, NZEC versera 500 000 CAD et émettra 1 000 000 d'actions ordinaires à Vliet pour mettre fin au prêt. Si NZEC ne paie pas avant le 31 juillet 2025, Vliet prolongera l'échéance du prêt jusqu'au 20 septembre 2026. Le prêt a été modifié pour devenir non convertible. L'accord nécessite l'approbation de la TSX Venture Exchange ainsi que la révocation partielle ou totale d'une ordonnance de cessation de négociation émise par la British Columbia Securities Commission. Comme Vliet est contrôlé par Frank Jacobs, président de NZEC, la transaction est considérée comme une opération entre parties liées mais répond aux critères d'exemption.
New Zealand Energy Corp (NZEC) hat eine Vereinbarung mit Vliet Financing B.V. getroffen, um das ausstehende Darlehen in Höhe von 2.000.000 CAD zuzüglich 753.997 CAD aufgelaufener Zinsen zu begleichen. Gemäß der Vereinbarung vom 8. Mai 2025 wird NZEC 500.000 CAD zahlen und 1.000.000 Stammaktien an Vliet ausgeben, um das Darlehen zu beenden. Sollte NZEC die Zahlungen bis zum 31. Juli 2025 nicht leisten, wird Vliet die Fälligkeit des Darlehens auf den 20. September 2026 verlängern. Das Darlehen wurde dahingehend geändert, dass es nicht wandelbar ist. Die Vereinbarung bedarf der Genehmigung der TSX Venture Exchange und der teilweisen oder vollständigen Aufhebung einer von der British Columbia Securities Commission erlassenen Handelsaussetzung. Da Vliet von NZECs Vorsitzendem Frank Jacobs kontrolliert wird, gilt die Transaktion als Geschäfte mit verbundenen Parteien, erfüllt jedoch die Anforderungen für eine Befreiung.
Positive
Significant debt reduction through settlement of CAD$2.75M total debt for only CAD$500,000 and 1 million shares
Extension option available until September 2026 if payment deadline is missed
Loan terms amended to be non-convertible, providing more clarity on debt structure
Negative
Company under cease trade order from British Columbia Securities Commission
Related party transaction with company chairman raises potential conflict of interest concerns
Additional share issuance will cause dilution for existing shareholders
Vancouver, British Columbia--(Newsfile Corp. - May 12, 2025) - New Zealand Energy Corp. (TSXV: NZ) ("NZEC" or the "Company") announced today that, further to its July 20, 2021, August 16, 2021, July 18, 2022, October 31, 2022, April 6, 2023 and October 20, 2023 news releases, in connection with the CAD$2,000,000 loan agreement (the "Loan") plus accrued interest of CAD $753,997, currently held by Vliet Financing B.V. ("Vliet"), the Company has entered into an agreement (the "Agreement") dated May 8, 2025, with Vliet, to terminate the Loan in exchange for the payment by the Company to Vliet of CAD$500,000 and the issuance of 1,000,000 common shares of NZEC. In the event that the Company has been unable to make the payments to Vliet on or before July 31, 2025, Vliet has agreed to extend the maturity date of the Loan to September 20, 2026. In addition, pursuant to the Agreement, the Loan has been amended to be non-convertible. The Agreement is subject to a partial or full revocation of the existing failure to file cease trade order issued by the British Columbia Securities Commission on May 6, 2025, and subject to approval of the TSX Venture Exchange.
Vliet is a company controlled by Frank Jacobs, Chairman and a director of NZEC, and therefore the termination of the Loan pursuant to the Agreement is a related party transaction for the purposes of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (the "Related Party Policies"). NZEC has determined that exemptions from the various requirements of the Related Party Policies are available in connection with the Agreement (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More Than $2,500,000).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information regarding: the business of the Company, including future plans and objectives, the Loan and the Agreement. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects NZEC's current beliefs and is based on information currently available to NZEC and on assumptions NZEC believes are reasonable. These assumptions include, but are not limited to: the underlying value of NZEC and its common shares, TSX Venture Exchange approval of the Agreement; NZEC's current and initial understanding and analysis of its projects and the development required for such projects; the costs of NZEC's projects; NZEC's general and administrative costs remaining constant; and the market acceptance of NZEC's business strategy. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of NZEC to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; industry condition; volatility of commodity prices; imprecision of reserve estimates; environmental risks; operational risks in exploration and development; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting NZEC; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in NZEC's disclosure documents on the SEDAR+ website at www.sedarplus.ca. Although NZEC has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of NZEC as of the date of this news release and, accordingly, is subject to change after such date. However, NZEC expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
What are the terms of NZERF's loan settlement agreement with Vliet Financing?
NZEC will pay CAD$500,000 and issue 1 million common shares to settle a CAD$2 million loan plus CAD$753,997 in accrued interest. If payment isn't made by July 31, 2025, the loan maturity extends to September 20, 2026.
Why is NZERF's loan settlement considered a related party transaction?
The transaction is considered related party because Vliet Financing is controlled by Frank Jacobs, who serves as Chairman and director of NZEC.
What regulatory approvals does NZERF need for the loan settlement?
NZEC needs TSX Venture Exchange approval and partial/full revocation of the cease trade order issued by the British Columbia Securities Commission.
How much debt is NZERF settling through this agreement?
NZEC is settling a total debt of CAD$2,753,997, consisting of a CAD$2,000,000 loan plus CAD$753,997 in accrued interest.
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