File photo of Robert Friedland.Rafal Gerszak
Ivanhoe Energy Inc. announced Monday it has amended a loan agreement with executive co-chairman Robert Friedland that could raise his stake in the company to 17.95 per cent from 15.49 per cent.
The deal involving Ivanhoe Energy and Ivanhoe Capital Finance Ltd., which concluded last week, amended a December 2011 loan agreement. It gives Mr. Friedland the right to convert each 96 cents of outstanding principal into one common share.
Ivanhoe stock closed Friday at 95 cents on the Toronto Stock Exchange.
Ivanhoe Energy said the exercise of the conversion right could result in up to 10,484,375 common shares being issued to Ivanhoe Capital, which would represent 2.96 per cent of the company.
"The conversion right was granted as consideration for the subordination of an existing loan to a new third party facility and no new proceeds were received by Ivanhoe Energy," the company said in a release.
Ivanhoe Energy is an independent international heavy oil exploration and development company operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide.