CALGARY, Alberta, Nov. 10, 2017 (GLOBE NEWSWIRE) -- Further to the press release issued on October 2, 2017, Newton Energy Corporation (the "Company" or "Newton") wishes to provide additional disclosure regarding the debt settlement agreement entered into with Kicker Power Corp. ("Kicker").
On April 27, 2016, Newton announced that it entered into a non-binding letter of intent with Kicker pursuant to which the parties were to complete a business combination (the "LOI"). Pursuant to the LOI, Newton advanced $400,000 to Kicker (the "Loan") at a rate of 5% per annum for a term of 18 months payable and due in full at the end of the term. The Loan was secured by a general security agreement over all of the assets of Kicker.
As a result of the failure of the parties to enter into a formal agreement on or before the agreed upon date, Newton announced that the parties mutually agreed to terminate the LOI.
With respect to the Loan, Kicker has repaid an aggregate of $77,707 to Newton ($61,983 in principal and interest and $15,723 in fees paid on behalf of Newton), however Kicker does not and will not have sufficient funds to repay the balance outstanding on the Loan and Kicker continues to wind up its operations. As such, the debt settlement agreement pursuant to which Kicker has agreed to issue an aggregate of 19.9% of the outstanding shares in the capital of Kicker in order to settle an outstanding debt of $349,154 ($337,678 in principal and $11,476 in accrued interest) is the best arrangement for both parties at this time.
The Company also announces that it has been advised by the NEX, a separate board of the TSX Venture Exchange that its common shares are scheduled to resume trading at the opening of the market on Tuesday, November 14, 2017.
For further information, please contact:
Newton Energy Corporation
Gino DeMichele, President & CEO
1600, 333 - 7th Avenue S.W.
Calgary, Alberta T2P 2Z1
Neither the NEX Board nor its Regulation Services Provider (as that term is defined in the policies of the NEX Board) accepts responsibility for the adequacy or accuracy of this release.