Calgary, Alberta--(Newsfile Corp. - August 6, 2019) - Cuda Oil and Gas Inc. (TSXV: CUDA) ("Cuda" or the "Company") announces that the board of directors of the Company has approved amendments to the stock option plan of the Company and certain currently outstanding options and it has granted additional stock options pursuant to the amended stock option plan. The board of directors of the Company has approved the following:
the amendment of the stock option plan to increase the number of common shares that may be issued pursuant to stock options to 3,624,539 common shares, representing 10% of the outstanding common shares and, subject to shareholder approval, a further increase to the number of common shares that may be issued pursuant to stock options to 4,349,447 common shares, representing 12% of the outstanding common shares of the Company;
the amendment of 2,036,214 stock options that were previously granted to officers, directors and employees at prices ranging from $3.71 to $7.10, to amend the exercise price on those options from their respective price per share to $0.50 per share; and
the grant of an additional 2,310,000 stock options to officers, directors and employees at an exercise price of $0.50 per share.
The Company plans to seek shareholder approval for the amendment of the stock option plan to increase the number of common share that may be issued to an amount in excess of 10% of the outstanding common shares and for the grant of options in excess of 10% of the outstanding common shares. The Company also plans to seek shareholder approval for the repricing of previously granted options. The amendments are subject to approval of the TSX Venture Exchange.
The Company also wishes to announce that it will issue common shares of the Company in satisfaction of a portion of the interest payable in respect of its outstanding convertible debentures. The Company has outstanding convertible debentures in the principal amount of $1.5 million that bear interest payable semi-annually at a rate of 12% per annum and entitle the Company to pay up to 50% of an interest payment in common shares. The Company will issue a total of 83,743 common shares at a price of $0.53 per share in satisfaction of interest in the amount of $44,384, representing 50% of the interest payable on July 21, 2019. The issuance of common shares in satisfaction of interest obligations is subject to the approval of the TSX Venture Exchange.
About Cuda Oil and Gas Inc.
Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long term focus on large, light oil resource based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.
For further information please contact:
President and Chief Executive Officer
Cuda Oil and Gas Inc.
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