HONG KONG, HONG KONG--(Marketwired - Nov. 11, 2013) - Primeline Energy Holdings Inc. (TSX VENTURE:PEH) -
NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRES SERVICES, OR DISSEMINATION IN THE UNITED STATES.
Further to disclosure requirements of applicable securities laws, Mr. Victor Hwang of Hong Kong Parkview, 88 Tai Tam Reservoir Road, Hong Kong, announces that he has acquired ownership and control of 9,427,272 common shares of the Company pursuant to closing of a debt settlement agreement with the Company dated October 10, 2013. The shares were issued to Mr. Hwang in settlement of US$5,000,000 of debt owed by the Company to Mr. Hwang (Cdn. $5,185,000 at the agreed exchange rate of US $1/Cdn. $1.037) at a price of Cdn. $0.55 per share. Mr. Hwang now has ownership and control of 59,325,084 common shares representing 59.05% of the issued and outstanding shares of the Company on a non-diluted basis, and 60,025,054 common shares of the Company representing 59.75% of the issued and outstanding shares of the Company on a partially diluted basis assuming the exercise of 700,000 options held by Mr. Hwang.
Mr. Hwang acquired the common shares for investment purposes. In the future, Mr. Hwang may or may not purchase or sell securities of the Company on the open market or in private transactions, depending on market conditions and other factors material to his investment decisions.
This press release is issued pursuant to Section 5.2(2) of Multilateral Instrument 62-104 and Section 102.1(2) of the Securities Act (Ontario), which also requires a report to be filed with regulatory authorities containing additional information with respect to the foregoing matters (the "Early Warning Report"). A copy of the Early Warning Report will appear with the Company's documents on the SEDAR website, at www.sedar.com.
About Primeline Energy Holdings Inc.
Primeline is an exploration and development company focusing exclusively on China resources to become a major supplier of gas and oil to the East China market. Primeline has a 75% Contractor's interest in and is the operator of the petroleum contract with CNOOC for Block 33/07 (5,877 sq km) in the East China Sea and a 36.75% interest in the LS36-1 gas field in Block 25/34 which is being developed by CNOOC Limited (acting as Operator for the development) together with Primeline and Primeline Petroleum Corp. ("PPC"). Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol PEH.
ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.
Ming Wang, Chief Executive Officer
Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Primeline. These statements relate to Primeline's expectation that the LS36-1 development will come into production in early 2014, and that the new loan facility to be extended by Mr. Hwang will be sufficient to meet the Company's working capital needs for securing all regulatory approvals for production. Although the statements are based on assumptions management believes to be reasonable, actual results may vary from those anticipated in such statements. First gas from the LS 36-1 Gas Field may be delayed for technical or other reasons, and the Company's working capital needs for final production approval may be materially larger. If first gas is delayed or if the Company's working capital needs are materially larger, the Company is likely to require additional working capital financing before the LS 36-1 Gas Field comes into production. There can be no assurance any such additional working capital financing will be available to the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.