logo-loader
viewHillcrest Petroleum Ltd

Hillcrest Petroleum gives more details on consideration of an initial coin offering

Today, the oil firm noted it was not conducting an ICO at this time but "may decide to do so in the future"

cranes
Hillcrest is an oil firm

Hillcrest Petroleum Ltd (CVE:HRH) has posted more details on its previously announced consideration of an initial coin offering (ICO).

On Thursday, the oil company said it had inked an engagement agreement with Houston-based Entero Capital LLC over potentially creating an asset-backed energy security coin using blockchain technology to use as an alternative form of financing.

Today, the oil firm noted it was not conducting an ICO at this time but "may decide to do so in the future".

"Any ICO would be compliant with relevant securities regulation and require Exchange approvals," it added.

"If the company decides to proceed with an ICO, it will determine the terms of such offering, and if such offering may be deemed to be either a security under the Securities Act (British Columbia) or a derivative."

If the ICO is determined to be a security, it will require either a prospectus or an exemption from the prospectus requirement to issue coins and/or tokens and to effect trades, it added.

A token or coin issued under an ICO would not give the acquirer equity, other interests or rights in the company equivalent to a holder of common shares, the firm added.

For example, no rights would be granted to participate in the profits or the distribution of assets, nor any voting rights in any meeting of the security holders.

Hillcrest also added: "The company only recently established oil production in Canada through its well reactivation program in Saskatchewan and is still in the development planning phase for its Saskatchewan and Alberta properties.

"An ICO linked to oil and gas production from Hillcrest's future oil and gas developments will therefore be a speculative investment, with no time frame defined for when commercial production from the Company's current and future oil and gas properties and projects will commence."

Hillcrest and Entoro will work together to seek funding to back the proposal and to eventually develop the currency program.

Hillcrest also noted on Monday that from the recently announced private placing to raise C$525,000  it will deploy funds for further development of its previously announced assets and acquisitions and for general working capital purposes. 

Quick facts: Hillcrest Petroleum Ltd

Price: 0.09 CAD

TSX-V:HRH
Market: TSX-V
Market Cap: $11.13 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Hillcrest Petroleum Ltd named herein, including the promotion by the Company of Hillcrest Petroleum Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Hillcrest Petroleum restarts oil production at West Hazel...

Hillcrest Petroleum (CVE: HRH-OTCPINK: HLRTF) CEO Don Currie joined Steve Darling from Proactive Vancouver to share news the company has restarted their oil production as West Hazel in Saskatchewan. That is 2 weeks ahead of their target date. Currie talks about the restart and even with oil...

on 05/27/2020

2 min read