Maskal Energy Ltd. Announces Closing of Asset Sale, Resignation of Director and Update on Revocation of Cease Trade Application Regarding Amendments to Interim Financial Statements
For Immediate Release March 24, 2010
Trading Symbol: MMK
NEWS RELEASE
MASKAL ENERGY LTD. ANNOUNCES CLOSING OF ASSET SALE, RESIGNATION OF DIRECTOR AND UPDATE ON REVOCATION OF CEASE TRADE APPLICATION REGARDING AMENDMENTS TO INTERIM FINANCIAL STATEMENTS
Calgary, Alberta - Maskal Energy Ltd. (TSX Venture Exchange: MMK) ("Maskal" or the "Corporation"), is pleased to announce today the closing of the previously announced transaction to sell substantially all of Maskal's assets to 3 Martini Ventures Inc. ("3 Martini") for an amended purchase price of $1,500,000. The previously announced purchase price of $1,400,000 was increased by $100,000 to simplify accounting as it brings forward requisite adjustments of the sale agreement. Proceeds of the sale are to be used to extinguish Maskal's debt and working capital deficiency. With the completion of this transaction, Maskal will be transferred to NEX.
Maskal also announces the resignation of Burkhard Franz as Director and Chairman of the Corporation effective March 18, 2010. The current Directors of the Corporation are Lorraine McVean and Savi Franz. Lorraine McVean was appointed the Chairperson of Maskal on March 18, 2010. The Board of Directors is looking to fill the vacancy on the Board shortly and Maskal will provide details of any appointment in a future news release.
With respect to Maskal’s application to the Alberta Securities Commission (“ASC”) for the revocation to the cease trade order, the Corporation has amended its unaudited interim financial statements dated September 30, 2009 which were filed on March 12, 2010. The amendments remedied errors identified by the ASC with respect to related party disclosures. Maskal also restated the cash flow statement to present cash flow from discontinued operations separate from cash flow from operating activities. Maskal continues to actively work with the ASC to complete the revocation of the cease trade order.
Maskal continues to formulate a business plan to recapitalize and is actively pursuing other opportunities to maximize shareholder value. Further details in this regard will be disclosed in a future news release.
For further information please contact:
Maskal Energy Ltd.
Lorraine McVean, Chairperson 1900, 715 – 5th Ave S.W. Calgary AB T2P 2X6 Tel: (403) 234-8998 Fax: (403) 265-4514
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