CALGARY, Alberta, April 22 /PRNewswire-FirstCall/ -- FORUM ENERGY
CORPORATION (OTC Bulletin Board: FRUEF; Berlin/Frankfurt/Munich: FE8) ("Forum"
or "The Company") announced today that the Company has entered into an
agreement with AIAK Group to raise $20 million for the development of the
Company's petroleum and coal assets.
The agreement is pursuant to a mandate between Forum and Mr. Hussain
Najadi, who is the Founder. Chairman and Chief Executive Officer of AIAK
Finance AG, Zug, Switzerland, the financial holding company of AIAK Capital
Ltd, Labuan and AIAK Malaysia Sdn Bhd, Kuala Lumpur.
Under the proposed agreement, Forum Energy will transfer its existing
petroleum assets as well as the potential coal mining assets in the
Philippines into a new Special Purpose Vehicle (SPV). A valuation of these
assets will then be undertaken by independent engineering firms. Based upon
this valuation, clients of AIAK Swiss will then purchase a minority interest
in the SPV in exchange for US$20 million.
Once the transaction is concluded, Forum Energy will be the majority
shareholders of the SPV (exact % to be determined through the independent
valuation) and the Company's securities will remain traded on current
exchanges with the number of shares and share certificates held by existing
investors to remain unchanged.
In addition it is intended that the new SPV will be listed on the
Singapore Stock Exchange (SGX). SGX is Asia-Pacific's first demutualized and
integrated securities and derivatives exchange.
"We are extremely pleased to have signed an agreement with AIAK, who are
handling the $20 million financing. The transfer of our assets to a new SPV
will importantly enable us to achieve this substantial institutional support
whilst minimizing dilution to our existing shareholders. Proceeds from the
financing will ensure our operational success to the point of commencement of
Oil, Coal and Power production as part of our longer term plan to become a
major energy provider in the region," stated David Robinson, President & CEO
of Forum Energy Corporation.
ABOUT AIAK SWISS: AIAK Group, consisting of AIAK Finance AG, Zug,
Switzerland, AIAK Capital Ltd, Labuan, and AIAK Malaysia Sdn Bhd, Kuala
Lumpur, Malaysia specializing in the spectrum of corporate finance and merger
& acquisition advisory services in Asia Pacific region. AIAK founded by
Hussain Najadi in 1975, established the first Arab linked merchant bank in
Malaysia, AMbank Group (http://www.ambg.com.my), now a US$16 billion banking group in
Malaysia. Since its foundation in 1975, AIAK Group has advised, managed and
co-managed clients in over $27 billion worth of transactions, in Asia Pacific
region. AIAK Group principally acts as a Corporate Advisor and assist private
and public clients in a wide range of private and public corporate finance
transactions which include: Mergers, acquisitions and divestitures, Strategic
partnerships/joint ventures, General financial and strategic advice and
Corporate restructurings.
On behalf of the Board of,
FORUM ENERGY CORPORATION
David R. Robinson
President & CEO
This release contains "forward looking statements" as per Section 21E of
the US Securities and Exchange Act of 1934, as amended. Although the Company
believes that the expectations reflected in such forward looking statements
are reasonable, it can give no assurance that such expectations will prove to
have been correct. Management is currently reviewing many options and there is
no assurance that they will not make decisions other than those now
contemplated. The Company is subject to political risks and operational risks
identified in documents filed with the Securities and Exchange Commission,
including changing and depressed oil prices, unsuccessful drilling results,
change of government and political unrest in its main area of operations.
For more information please contact David Robinson at 403-290-1676, e-mail
info@forumenergy.com, or visit the Forum Energy website at
http://www.forumenergy.com.
SOURCE Forum Energy Corporation
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Related links:
http://www.forumenergy.com
CONTACT:
David Robinson of Forum Energy Corporation,
+1-403-290-1676, or info@forumenergy.com
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