TSX-V TRADING SYMBOL: CEC
VANCOUVER, Feb. 26, 2016 /CNW/ - Compliance Energy
Corporation (the "Company") is disappointed to announce that its
Board of Directors, in its entirety, has resigned this week.
The withdrawal of the Company's major Korean and Japanese partners
from the Raven project, which was precipitated by the Environmental
Assessment Office's protracted process of developing an acceptable
Application Information Requirements for the project, followed by
the EAO's resistance in accepting a fully developed Application for
stakeholder review, has made it impossible to raise further funds,
attract alternate partners or to sell the project.
The Company, together with its' former international partners
had spent more than 6.5 years and over $35
million trying to advance this project towards production,
including approximately $10 million
directly in dealing with the environmental assessment process's
pre-application stage. This, in hindsight, has effectively
left the Company insolvent and rendered valueless the significant
job creating resource. The Company's consultants produced one
of the most comprehensive Application Information Requirements
developed for a mining project in BC (which contained over 14,500
pages of detailed environmental studies completed by third party
consultants). Given the EAO's reluctance in accepting the
Application and Addendum into the Application review process, the
options for funding the project have been exhausted. In
addition, the Company's only secured creditor has demanded
repayment of their loan.
The Directors tried a number of avenues to raise additional
capital and even tried to attract new money to the Company with the
introduction of a new project and new direction, but the existing
debts left behind by the failed EAO process made this option too
difficult.
Therefore, the Board of Directors concluded that there was no
alternative other than to ensure that all payroll liabilities were
fully funded and resign from the Corporation. This occurred
at 5 pm, Thursday February 25, 2016 when the resignations
were delivered to the registered office of the Company. All
of the Company's officers have also resigned.
The Former Board of Directors of
COMPLIANCE ENERGY CORPORATION
Neither the 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
Note: This news release contains forward-looking statements
under applicable securities laws. All statements in this
release, other than statements of historical facts, that address
events or developments that the Company expects to occur, are
forward-looking statements and are generally, but not always,
identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materially from
those in the forward-looking statements. Factors that could cause
the actual results to differ materially from those in
forward-looking statements include: the ability of the Company and
the Borrower to repay the Loan and interest thereon based on
working capital and general economic, market or business
conditions; the receipt of the required regulatory approval and the
use of the proceeds of the Loan. Investors are cautioned that any
such statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. Forward-looking statements are
based on the beliefs, estimates and opinions of the Company's
management on the date the statements are made. Except as required
by applicable securities laws, the Company undertakes no obligation
to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors,
should change.
SOURCE Compliance Energy Corporation