CALGARY, March 19, 2012 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ:
IVAN) today issued an early warning report, pursuant to the early
warning requirements of National Instrument 62-103 with respect to the
common shares in the capital of Ivanhoe Energy (the "Common Shares").
In accordance with the early warning requirements, applicable Canadian
securities laws and prior releases and filings by Ivanhoe Energy,
Ivanhoe Energy is required to report certain information respecting
securities held by Robert M. Friedland ("Mr. Friedland").
Pursuant to an amending agreement, dated March 14, 2012, amongst Ivanhoe
Capital Finance Ltd. ("Ivanhoe Capital") and Ivanhoe Energy, which
amended that certain loan agreement, dated December 30, 2011, Mr.
Friedland acquired, indirectly through his wholly-owned corporation,
Ivanhoe Capital, the right to convert, at any time prior to maturity of
the loan, the then outstanding principal into Common Shares at a
conversion rate of one whole Common Share for each CAD$0.96 of
principal amount then outstanding, subject to customary adjustments
(the "Conversion Right"). The conversion price of CAD$0.96 was
calculated with reference to the volume weighted average trading price
of the Common Shares on the Toronto Stock Exchange for the five
consecutive trading days preceding March 12, 2012. The exercise of the
Conversion Right may result in up to 10,484,375 Common Shares being
issued to Ivanhoe Capital, which would represent 2.96% of the
outstanding Common Shares (taking account of the conversion).
The Conversion Right was granted as consideration for the subordination
of an existing loan to a new third party facility and no new proceeds
were received by Ivanhoe Energy.
As of March 16, 2012, Ivanhoe Energy had outstanding 348,972,761 Common
Shares, which number includes those securities held by Mr. Friedland
which are convertible into Common Shares within 60 days. Mr. Friedland
currently, directly and indirectly, owns 54,045,058 Common Shares,
representing approximately 15.49% of the issued share capital of
Ivanhoe Energy. If the Conversion Right is exercised for the maximum
amount permissible, it will result in Mr. Friedland owning 64,529,433
Common Shares, representing approximately 17.95% of the issued capital,
taking account of the conversion. The values reported with respect to