Vancouver, BC / TheNewswire / January 12, 2017 - Newcastle Energy Corp. (the “Company”) Board of Directors, and its shareholders, have approved a return of capital distribution of $0.50 per share.  Shareholders of record on the record date will be entitled to receive this distribution.

 

The TSX Venture Exchange has determined to implement a due bill trading process in connection with this distribution.  A due bill is an entitlement attached to listed securities undergoing a material corporate action, such as a material return of capital.  In this instance, with a record date set of January 19, 2017, anyone purchasing a common share during the period commencing at the opening of business January 17, 2017 (the due bill commencement date) and ending on the payment date of January 26, 2017, inclusive, will receive a payable right.  Any trades that are executed during the due bill period will be flagged to ensure purchasers receive the entitlement to the $0.50 capital return payment.  The common shares will commence trading on an ex-distribution basis on January 27, 2017.  The due bill redemption date will be January 31, 2017.

 

Non-registered shareholders do not need to take any action.  Newcastle will use the direct registration system (DRS) to electronically register the due bill payments pursuant to the return of capital payment.  Computershare Investor Services Inc., Newcastle’s registrar and transfer agent, will advance monies to CDS, who will disseminate those funds to their CDS participants for distribution to their beneficial holders of Newcastle shares.

 

Registered shareholders, however, take note that the Company was incorporated in 1981.  Since incorporation, the Company has undergone several corporate reorganizations involving share consolidations and name changes.  A partial list of former names of the Company include Cove Energy Corporation, Cove Resources Corporation, Derek Resources Corporation and Derek Oil and Gas Corporation.  If a shareholder holds certificates representing shares issued under any of the former names of the Company, you must, in order to be eligible to receive a proportionate share of the distribution, deliver these certificates (with appropriate supporting documentation) to Computershare Investor Services Inc. for exchange into the corresponding number of Common Shares of the Company under its current name (Newcastle Energy Corp.)  For greater certainty, only holders of common shares of Newcastle Energy Corp. will be eligible to receive a portion of the distribution.

  

The return of capital is not expected to be a taxable event for Canadian tax purposes.  Shareholders are advised to contact their tax advisers for further information.

 

ON BEHALF OF THE BOARD

Mr. Greg Amor,

CEO, Director

Newcastle Energy Corp.

 

Forward Looking Statements: This news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Forward-looking statements in this release include statements regarding the timing and completion of the Distribution and the tax consequences to each shareholder resulting from the Distribution. Factors that could cause such differences include: the Distribution may not be approved by the shareholders or the securities regulators; or that the Board may, in its discretion, decide not to proceed with the Distribution for any reason whatsoever. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, the timely receipt of any required regulatory approvals. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

For further information please contact Newcastle Energy Corp. at:

T: (604) 331-1757

F: (604) 669-5193

E-Mail:  robin@newcastlenergy.com