CALGARY, June 21, 2013 /PRNewswire/ - (TSXV: ROZ) -
Rodinia Oil Corp. ("Rodinia") announces that its strategic review
process being conducted with its financial advisor has now ended
without success.
On September 18,
2012, Rodinia announced that it had engaged CIBC World
Markets Inc. ("CIBC") as exclusive financial advisor to assist the
Board of Directors' Special Committee in exploring and evaluating a
range of strategic alternatives with the view to maximizing
shareholder value. Such strategic alternatives could have
included, but were not limited to, a sale, farmout or joint venture
of all or a portion of the assets of Rodinia, a merger or other
business combination of Rodinia with another entity, a
recapitalization of Rodinia, a sale of Rodinia as a whole or any
combination thereof.
Over the past nine months, various parties have
signed confidentiality agreements with Rodinia and have reviewed
its confidential data. However, no proposals have been
brought forward for Rodinia to consider and as a result, the
financial advisory services of CIBC have been terminated.
As Rodinia has no external source of revenue and
has been unable to collect any of the $4.4
million owed to it by its working interest partner, it must
depend upon the use of its remaining working capital to continue to
carry on business. In order to reduce its ongoing expenses, Rodinia
has reduced the compensation payable to its President and Chief
Executive Officer to nil, has reduced the compensation payable to
its Vice President Finance and Chief Financial Officer
substantially and has terminated the services of several of its
staff, including Ms. Susan Showers,
Manager, Investor Relations. Rodinia's Board and senior management
would like to thank Ms. Showers for her dedicated contribution to
Rodinia and wish her the very best in her future endeavors.
Rodinia will continue to seek a transaction that
will benefit its shareholders. However, as it has been unable to
raise additional capital or complete a transaction through its
strategic review process, Rodinia's ability to carry on as a going
concern is now in serious doubt.
About Rodinia Oil Corp.
Rodinia is engaged in the exploration,
acquisition and development of petroleum and natural gas assets in
Australia's Officer Basin.
Rodinia's assets include an 85% working interest in approximately
23,000,000 gross acres of exploratory lands in South Australia and Western Australia, along with 4,048 kilometres
of seismic acquired and processed by Rodinia, the results of two
wells and a 15,300 kilometre aeromagnetic/aerogravity survey, all
relating to this exploratory acreage. Rodinia has no
debt. Rodinia has offices in Calgary, Alberta and Adelaide, South
Australia. Its common shares are listed for trading on the
TSX Venture Exchange under the symbol "ROZ".
Forward-Looking Statements
This press release may contain
forward-looking information that involves substantial known and
unknown risks and uncertainties, most of which are beyond the
control of Rodinia, including, without limitation, statements
pertaining to management's future plans. All statements
included herein, other than statements of historical fact, are
forward-looking information and such information involves various
risks and uncertainties. There can be no assurance that such
information will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such information. A description of assumptions used to
develop such forward-looking information and a description of risk
factors that may cause actual results to differ materially from
forward-looking information can be found in Rodinia's disclosure
documents on the SEDAR website at www.sedar.com. Any
forward-looking statements are made as of the date of this release
and, other than as required by applicable securities laws, Rodinia
does not assume any obligation to update or revise them to reflect
new events or circumstances.
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.
SOURCE Rodinia Oil Corp.