CALGARY, June 1, 2012 /CNW/ - Oilsands Quest Inc.
(NYSE MKT: BQI)
("Oilsands Quest" or "the Company") has applied to delist its shares
from the NYSE MKT following discussions with representatives from the
NYSE MKT about the Companys current status.
Oilsands Quest has filed
an application to list the Companys stock on the Canadian National
Stock Exchange ("CNSX"), which would, if successful, enable Oilsands
Quests shareholders to trade their shares once the new listing becomes
active.
Listing on the CNSX is subject to the Company meeting the
exchanges minimum listing qualifications and other requirements.
The
Company expects the delisting from the NYSE MKT to be effective before
the end of June, 2012.
If the application to list with the CNSX is
successful, the Companys objective is to have its shares listed and
trading on or before the delisting from the NYSE MKT.
Oilsands Quest
will provide further disclosure with specific trading details as its
application is processed by the CNSX.
Oilsands Quest continues to operate under the protection of the
Companies Creditors Arrangement Act (Canada) and the supervision of a
court-appointed monitor.
The Company is also continuing to pursue the
previously announced process to solicit offers to acquire, restructure
or recapitalize the Company, with the assistance of TD Securities Inc.
There can be no assurance that the solicitation process will result in
a financing or a sale of the Company or in any other transaction.
Further to previous disclosure, Oilsands Quest received notice from the
staff of the NYSE MKT that the Company remains out of compliance with
certain of the NYSE MKTs continued listing standards as set forth in
Part 10 of the NYSE MKTs Company Guide.
Specifically, NYSE MKT noted
that the Company is not in compliance with Section 1003(a)(iv) of the
Company Guide because the Company has sustained losses which are so
substantial in relation to the Companys overall operations or its
existing financial resources, or its financial condition has become so
impaired that it appears questionable, in the opinion of the NYSE MKT,
as to whether the Company will be able to continue operations and/or
meet its obligations as they mature.
The Company was afforded the opportunity to submit a plan of compliance
to the NYSE MKT and on February 14, 2012 presented its most recent plan
to the NYSE MKT.
In its letter of February 24, 2012, the NYSE MKT
notified Oilsands Quest that it accepted the Companys plan of
compliance and granted the Company an extension until May 18, 2012 to
regain compliance with the continued listing standards.
Subsequent to
May 18, 2012, and because the Company has not regained compliance with
continued listing standards, NYSE Regulation has indicated that the
Company would likely be subject to delisting.
Trading in the common
shares of Oilsands Quest remains halted on NYSE MKT.
The CNSX is a streamlined stock exchange that provides a visible market
for qualifying small-cap companies.
It is recognized by the Ontario
Securities Commission ("OSC") as a stock exchange and is subject to OSC
regulatory requirements.
In addition, market surveillance and
regulatory oversight on the CNSX are provided by the Investment
Industry Regulatory Organization of Canada.
Additional information is
available at www.cnsx.ca.
About Oilsands Quest
Oilsands Quest Inc.
(www.oilsandsquest.com) is exploring and developing oil sands permits and licences, located in
Saskatchewan and Alberta, and developing Saskatchewans first
commercial oil sands discovery.
Forward-looking statements:
This news release includes certain statements that may be deemed to be
"forward-looking statements", including the Companys plans to list its
common shares on the CNSX.
All statements, other than statements of
historical facts, included in this news release that address
activities, events or developments that management expects, believes or
anticipates will or may occur in the future are forward-looking
statements.
Forward-looking statements are statements other than relating to
historical fact and are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "potential", "prospective" and other similar words or
statements that certain events or conditions "may" "will" or "could"
occur.
Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
anticipated in the forward-looking statements, which include but are
not limited to the ability to satisfy the minimum listing
qualifications and other requirements of the CNSX, the ability to raise
additional capital, risks associated with the Companys ability to
implement its business plan, its ability to successfully complete the
previously announced Solicitation Process while under creditor
protection, its ability to submit a timely plan to its stakeholders and
the Court under the CCAA and to resolve its operational, legal and
financial difficulties, risks inherent in the oil sands industry,
regulatory and economic risks, land tenure risks and those factors
listed under the caption "Risk Factors" in the Companys Form 10-Q
filed with the Securities and Exchange Commission on March 8, 2012.
The
Company undertakes no obligation to update forward-looking information
if circumstances or managements estimates or opinions should change,
except as required by law.
The reader is cautioned not to place undue
reliance on forward-looking statements.
