AltaCanada announces completion of private placement of convertible debenture

CALGARY, Canada Private Placement – AltaCanada Energy Corp. announced that it has today closed the previously announced non-brokered private placement of a convertible debenture (the “convertible debenture”) in the principal amount of CDN$1,000,000 (the “Private Placement”) effective May 1, 2009. The convertible debenture will yield an interest rate of 9% paid semi-annually, mature on January 30, 2011 (the “Maturity Date”) and is convertible into common shares (“Common Shares”) of the Corporation at $0.10 per share (the “Conversion Price”). Prior to the Maturity Date, upon the simple average of the closing price per share for the Common Shares for any 10 consecutive trading days selected by the Corporation commencing not more than 60 trading days before such date on the TSX Venture Exchange becoming equal or greater than $0.20 per Common Share (subject to the terms of the convertible debenture) any principal amount remaining on such date shall be deemed to be converted immediately in its entirety, into fully paid and non-assessable
Common Shares based on the Conversion Price. Proceeds from the Private Placement will be used for corporate purposes.

Pursuant to the policies of the TSX Venture Exchange and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the Private Placement is classified as a “related party transaction” as a partnership controlled by James W. Collins, a director of the Corporation, was the sole subscriber for the convertible debenture.

The Corporation received a conditional approval  from the TSX Venture Exchange in connection with the Private Placement. One of the conditions of the Conditional Approval is that Mr.  Collins must provide an undertaking to the TSX Venture Exchange stating that he will not convert any of the convertible debentures (including the debenture issued in June 2008) owned or controlled by him such that the number of Common Shares held directly or indirectly by him would exceed 19.9% of the total number of issued and outstanding Common Shares, unless disinterested holders of Common Shares approved such conversion and the creation of a new Control Person (as such term is defined in the TSX Venture Exchange Company Manual).

The Corporation intends to seek such approval from the disinterested holders of Common Shares at a special meeting to be called for Monday, June 29th, 2009
at 09:00 am.

The Corporation is engaged in the acquisition, exploitation and production of crude oil and natural gas reserves in Western Canada and

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