FEC RESOURCES INC. (PINK: FECOF) (“FEC”) is pleased to announce that on April 14, 2020 Forum Energy Limited (“FEL”) completed a fund raising of US $2,500,000 which was achieved by FEL issuing new shares at a price of US $0.30 each.
FEC was able to participate in the FEL fund raising thereby maintaining its 6.8% interest in FEL at a cost of approximately US$170,000.
The Company is grateful to PXP Energy Inc. (“PXP”) who advanced the approximately US $170,000 directly to FEL on FEC’s behalf. The advance from PXP is considered an advance against our upcoming stock rights offering (“SRO”) which is still awaiting final SEC approval. The advance will therefore be settled by the issuance of new common shares from treasury at the same price as the final SRO price.
Paul Wallace, CEO of FEC stated “As I am sure all shareholders will appreciate, the current environment in the United States makes the timing of the launch of our SRO and the issuance of the shares referred to above uncertain.”
On behalf of the Board of,
FEC Resources Inc.
For more information please e-mail info@FECResources.com or visit the FEC Resources website at www.FECResources.com
FEC cautions that this release contains forward-looking statements, including, without limitation, statements relating to the terms and completion of the Rights Offering. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the effectiveness of the Registration Statement related to the Rights Offering; our ability to continue as a going concern; our ability to obtain and maintain sufficient financing to provide liquidity to meet our business objectives. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see FEC’s filings with the Securities and Exchange Commission, including our most recent annual report on Form 20-F and quarterly report on Form 6-K. FEC cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law