DXI Energy Retires All Commercial Bank CreditOriginal 2011 Loan Facility of C$7mm Paid Off in Full
DXI Energy Inc. (DXI: NYSE MKT/ TSX) ("DXI" or the "Company"), an upstream oil and gas exploration and production company operating in Colorado's Piceance Basin and the Peace River Arch region in British Columbia, today announced that it has eliminated its longstanding bank debt and retired its credit facility with a Canadian chartered bank, complete with return of all collateral and annulment of restrictive contract requirements.
As previously reported, DXI had a balance of C$902,000 as of September 30, 2015. The Company originated the C$7 MM facility in 2011 with recent more restrictive amendments and associated renewals on November 24, 2014, March 16, 2015 and July 6, 2015. With the retirement of this facility, DXI is no longer subject to the restrictive collateral and ratio requirements currently being imposed by the commercial banking industry in the energy sector.
"We are pleased to retire this bank facility as this demonstrates our commitment to eliminating capital encumbrances and increasing corporate flexibility. During these challenging markets, we remain focused on securing opportunistic bolt-on producing assets to supplement our production profiles associated with successful projects in the Piceance Basin and the Peace River Arch. The selective addition of production and desirable reserves, financed using more flexible non-arms length capital will help us build a stronger foundation supporting both growth & transactional outcomes," stated Robert Hodgkinson, CEO.
On January 19, 2016 DXI Energy received a letter from NYSE MKT LLC (“NYSE MKT” or the “Exchange”) stating that it is not in compliance with the continued listing standards as set forth in Section 1003 of the NYSE MKT Company Guide (the “Company Guide”) as it pertains to the low price of its securities. In order to maintain its listing, the Company must address how it intends to regain compliance by July 19, 2016. If the plan is accepted, the Company may be able to continue its listing but will be subject to periodic reviews by the Exchange. If the plan is not accepted or if it is accepted but the Company is not in compliance with the continued listing standards by July 19, 2016, or if the Company does not make progress consistent with the plan, the Exchange may initiate delisting procedures as appropriate.
The Company's management is pursuing options to eliminate any perceived deficiency, intends to submit a compliance plan on or before the deadline set by the Exchange and reminds all stakeholders that the listing of its common shares on the TSX is in no way affected.