Alaska Pacific Energy Corp (ASKE) company history: the story so far

History

Alaska Pacific Energy tried to buy an oil sands technology firm, Entec, but the deal collapsed, so it turned to a Tanzanian gold option and then deregistered from SEC reporting in 2011.

2010: The Entec oil sands deal

Alaska Pacific Energy Corp, a Nevada company with an office in Carlsbad, California, began 2010 by chasing oil sands. On March 18 it signed a royalty-free licence to use Engineering Technology, Inc. (Entec)'s horizontal directional drilling technology, a method of recovering oil from oil sands, in North America. In return it agreed to issue 15,000,000 restricted shares to Entec, which diluted existing shareholders.

In June it went further, agreeing to buy all of Entec, a private Calgary company. The price was $7,000,000 plus 12,000,000 restricted shares at a deemed $0.25 each, and the company also had to raise $5,000,000 for working capital. It set up a Calgary subsidiary, Alaska Pacific Energy (Canada) Ltd., with Entec's CEO Grant Jameson as its CEO.

The deal missed its August 31 closing date because due diligence took longer than expected. The deadline moved to October 31, and an amended agreement dated September 18 would have cancelled the 15,000,000 shares and paid Entec with a convertible debenture covering 27 million shares. Then, in November, the deal was called off: Entec turned down the offer, preferring to stay private. The licence was cancelled and Entec agreed to return its 15,000,000 shares for cancellation.

2011: A turn to Tanzania and deregistration

On January 12, 2011 the company signed an option with Sundance Gold Ltd. to acquire its 80% interest in mining and prospecting licences in the Handeni area of Tanzania. This was a new direction away from oil sands. The price was $3,150,000 in staged payments, starting with $75,000 on signing, plus $3,500,000 of exploration work over three years. It also had to issue 30,000,000 shares to Sundance by February 14, 2011, to be returned for cancellation if the option was not exercised.

The records do not say how the company would fund these payments, or whether they were met. On July 25, 2011 the company deregistered its securities, ending its obligation to file reports with the SEC. At that date it held only the Tanzanian option and had no producing assets.

Written from the 6 story beats below (2010 to 25 July 2011), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

2011

25 July
Alaska Pacific Energy Corp deregistered its securities, ending its obligation to file reports with the SEC.
listing compliance notice
18 Jan
On January 12, 2011 the company signed an option with Sundance Gold Ltd. to acquire SUN's 80% interest in mining and prospecting licences in the Handeni area of Tanzania, a new direction away from the cancelled Entec oil sands deal. The price is $3,150,000 in staged payments (the first $75,000 on signing), $3,500,000 of exploration work over three years, and 30,000,000 company shares to SUN by February 14, 2011. If the option is not exercised, those shares are to be returned for cancellation.
material agreement

2010

9 Nov
The Entec acquisition is off: the amended agreement is null and void because Entec turned down the company's offer, preferring to stay private. The company and Entec agreed to cancel the March 2010 licence and Entec will return its 15,000,000 shares for cancellation, reversing the earlier share issue. This ends the Entec thread.
material agreement
22 Sept
The Entec acquisition did not close by August 31, 2010 because due diligence took longer than expected, and the deadline was extended to October 31, 2010. Under an amended agreement dated September 18, 2010, the 15,000,000 shares issued to Entec for the licence are to be cancelled and Entec is to receive a convertible debenture covering 27 million shares (those 15 million plus the 12 million from the purchase agreement). This continues the Entec deal and changes how Entec is paid.
material agreement
9 June
On June 8, 2010 the company agreed to buy all the shares and assets of Entec, the Calgary private company whose technology it had licensed in March. It would pay $7,000,000 and issue 12,000,000 restricted shares at a deemed $0.25 each, and must also raise $5,000,000 for working capital. The deal is subject to due diligence, with closing expected by August 31, 2010. Entec's CEO Grant Jameson is to join the board at closing, and a new Calgary subsidiary, Alaska Pacific Energy (Canada) Ltd., has been set up with him as its CEO.
material agreement
30 Mar
On March 18, 2010 the company signed an oil sands licensing agreement with Engineering Technology, Inc. (Entec) for a royalty-free licence to Entec's horizontal directional drilling oil-sands recovery technology in North America. In return it will issue 15,000,000 restricted common shares to Entec, which dilutes existing shareholders.
material agreement