Bankers Petroleum Finalizes Company Spin Out



Bankers Petroleum Ltd. has provided the following update in respect of its plan of arrangement pursuant to which all of Bankers U.S. operations and assets have been spun out into BNK Petroleum Inc.

The date and time for determining which Bankers shareholders are to receive BNK-US shares was Monday, July 14, 2008 at 4:30 p.m. (Calgary time) (the "Record Time"). Certificates representing BNK-US Shares are expected to be sent to registered holders on or about Thursday, July 17, 2008.

Pursuant to the Arrangement, Bankers shareholders as of the Record Time received one (1) BNK-US Share for each ten (10) Bankers Shares. At the Record Time, the final adjustment price was determined for
Bankers' listed common share purchase warrants.

The Purchase Warrants listed under the symbol BNK.WT will have their exercise price adjusted from CAD$0.95 to CAD$0.83 per Bankers Share. The Purchase Warrants listed under the symbol BNK.WT.A will have their exercise price adjusted from CAD$0.90 to CAD$0.79 per Bankers Share.

Within the next ten days, Bankers intends to complete the consolidation of the Bankers Shares on the basis of one (1) new post-consolidation Bankers Share for each three (3) pre-consolidation Bankers Shares, subject to
regulatory approval. Upon completion, the consolidation will result in the number of Bankers Shares into which the Purchase Warrants may be exercised for to be divided by three (3) and the exercise prices of such Purchase Warrants will be tripled.

The resulting adjustments to the exercise prices of the Purchase Warrants are expected to be as follows:

  • The Purchase Warrants listed under the symbol BNK.WT will have their exercise price adjusted from CAD$0.83 to CAD$2.49 per Bankers Share; and
  • The Purchase Warrants listed under the symbol BNK.WT.A will have their exercise price adjusted from CAD$0.79 to CAD$2.37 per Bankers Share.

Bankers unlisted common share purchase warrants and stock options will be adjusted in accordance with the same formula applied to the Purchase Warrants. Specific details and timing in connection with the consolidation will be released shortly in a further press release.

 


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