TORONTO, Nov. 16, 2016 /CNW/ - Phoenix Canada Oil Company Limited (TSX-V:PCO) ("Phoenix" or the "Company"), today announced the completion of a comprehensive strategic review of its existing assets, and current business operations, as well as the formation of a working group of the Board to evaluate potential operating assets and targets for acquisition.

The Board of Directors initiated a review of Phoenix's Hydrogen Production System and SynFuel Technology business segments to determine their viability and potential to enhance shareholder value. As part of the review, the Board contracted two leading independent science and technology firms, Savant Technical and Kirkdale Consulting (the "independent contractors").  Both independent contractors were selected based on their extensive experience with the science of renewable energy, the evaluation of intellectual property, patenting procedures and techno-economic assessment, as well as their affiliation with world-class academic institutions, including the University of Toronto and Massachusetts Institute of Technology (MIT).

Following thorough review of the independent contractors' findings, the Board of Directors has concluded that it will cease all further investments in the early stage Hydrogen Production System as potential returns do not adequately compensate for the technology risk, and the time and resources necessary to achieve successful commercialization. The Company will continue to invest research funding in its proprietary SynFuel Technology system. As part of SynFuel Technology investment, Phoenix is implementing an aggressive patent and intellectual property strategy to protect its interests in the 'building block' nature of the technology as it relates to a range of commercial applications.

"I believe that the combined value of our existing assets exceeds the valuation we are currently receiving in the market," said Dr. Charlotte Moore Hepburn, interim CEO of Phoenix. "The Board and I have determined that a course change is necessary to ensure that our resources are allocated to the areas of the existing business that offer the highest possible value to shareholders and to new opportunities that will afford Phoenix growth opportunities in the future.  Drawing on the long and highly productive history of Phoenix, we will continue to pursue innovation responsibly, by balancing dynamic high growth investments with durable, revenue-producing holdings.  As we have always done, we will continue to maintain strict internal financial controls and will clearly communicate with both our shareholders and the broader investment community our vision, our goals and our progress"

Phoenix is currently evaluating acquisition targets that would generate additional shareholder value through the purchase of operating assets.   Dr. Moore Hepburn continued, "We are ceasing all investments in higher risk projects with long and uncertain pathways to commercialization, like the Hydrogen Production System. As we look to identify compelling new opportunities, we will actively pursue quality operating assets that we believe will, over time, build greater long-term shareholder value."

The recently formed sub-committee of the Board of Directors will identify and evaluate potential acquisition targets for suitability utilizing the following criteria: operational assets; EBITDA positive; strong durable cash generation; and low regulatory and political risk.

Phoenix has no contractual binding arrangements at present for new assets, and there can be no assurances that the Company will consummate an acquisition. The Company will update shareholders, in a timely fashion, once it has identified a target, or targets, that it plans to move forward on.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Dr. Charlotte Moore Hepburn
Interim Chief Executive Officer

SOURCE Phoenix Canada Oil Company Limited