Aqua-Pure seeks approval for reduced conversion price for debentures

Wastewater recycler, oil services firm looks to improve balance sheet

By Jennifer Chiou

New York, Sept. 2 - Aqua-Pure Ventures announced that it is seeking approval from shareholders for the temporary reduction of the conversion price of its C$19,525,000 of secured convertible debentures due March 10, 2012.

Holders will decide at the annual general and special meeting of shareholders to be held on Sept. 29 whether to authorize the cut of the conversion price to C$0.50 per share until the end of the year.

When the debentures were issued in 2007, the conversion price was announced at C$0.75 in the first two years, C$1.00 in the third year, C$1.25 in the fourth year and C$1.50 in the fifth year.

Shareholders will also vote on approval of the proposed issue of 14,593,292 common shares to Hallmark Resources Ltd. and Hallmark Education Foundation, entities related to Jacob Halldorson and Brent Halldorson, officers and directors of the company, at $0.50 per share in exchange for debt.

The company said in a news release that the proposals designed to improve its balance sheet.

Additionally, Aqua-Pure is looking for approval of an amendment to the escrow agreement dated May 30, 2006 to provide for the full release of the escrowed securities on May 15, 2013.

Based in Calgary, Alta., Aqua-Pure is a recycler of industrial wastewater in North America and an oilfield engineering and services firm. Its shares (TSX Venture: AQE) closed at C$0.25 each on Friday.

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