Western Canada Oil and Gas Ltd. (“WCOG”) is hereby issuing this statement to outline WCOG’s final position regarding the recapitalization of Atikwa Resources Ltd. (“ATK”).
WCOG hereby rescinds all previous offers and actions towards the investment in ATK. This decision has been brought about through the overwhelming amount of apathy, shown through the lacklustre response from existing ATK shareholders to efforts of WCOG to organize a Special Shareholders Meeting.
WCOG principals had several telephone conversations yesterday (May 2, 2013) with large-stake ATK shareholders. These shareholders reported to have also been in simultaneous conversations with Mr. Kehoe. Through reviewing the facts of the transaction with these shareholders have lead WCOG to realize the following:
A) There is a great deal of lack of clarity and misunderstanding about WCOG’s most recent public statement; despite taking the time to walk the concerned shareholders through the process, there appears to be a lack of commitment from shareholders to effectively ‘want’ to address or enact the process that WCOG intended to turn ATK around.
B) Regardless of misinformation leading to the current misunderstandings, it indeed is material fact that ATK’s legal counsel drafted the Recapitalization Agreement and Subscription Agreement, providing them to WCOG in simple draft form (not negotiated or completed format) on March 14, 2013 – two days after the final draft was supposed to have been completed to keep the process moving forward.
C) WCOG was led to believe by the concerned shareholders, presumably echoing commentary from ATK principals, that the only way that the $100,000 deposit would be returned to WCOG was to post an additional, multi-million “proof of financial capacity” into ATK’s lawyer’s trust account. This is effectively blackmail.
For WCOG to continue to proceed with the proposed investment into ATK, it requires its $100,000 deposit back in our account prior to re-starting negotiations. This is not negotiable. WCOG would then be prepared to negotiate a formal agreement with ATK principals, composed by WCOG’s legal counsel, and then WCOG would commence a non-committal 30-45 day due-diligence period to review the financials, bank accounts, physically inspect wells, review well production logs, resource sales logs, known and unknown creditors of the company, etc… Upon successful conclusion of all of this, WCOG would then consider proceeding with the proposed investment into ATK
WCOG continues to take all proper and legal steps to reclaim the $100,000 deposit that we had placed with ATK.
Western Canada Oil and Gas Ltd.
Per: Herbert A. Veckenstedt Jr.
President and CEO