CALGARY, ALBERTA–(Marketwired – March 23, 2016) – PRD Energy Inc. (“PRD” or the “Company“) (TSX VENTURE:PRD) announces filing of its financial statements as at and for the year ended December 31, 2015, and provides an update on its strategic alternatives process. The Company’s year-end filings consisting of consolidated financial statements and management’s discussion and analysis for the year ended December 31, 2015 are available on SEDAR at www.sedar.com. All references to dollars or “$” in this news release are references to Canadian dollars.
Strategic Alternatives Process
The special committee of the board of directors of PRD has directed management and its advisors to evaluate in greater detail alternatives to returning capital to its shareholders followed by the voluntary liquidation and dissolution of the Company. Such alternatives may include, but are not limited to, one or more distributions of capital followed by the voluntary dissolution of PRD or the redemption of all the outstanding common shares.
Notwithstanding its direction to management, the special committee will continue to work with its financial advisor, FirstEnergy Capital Corp., to identify, consider and evaluate other strategic alternatives available to PRD, including a business combination with another issuer.
As of March 22, 2016, the Company had a cash balance of $13.4 million and expects to incur not more than $1 million in restructuring and other costs from March 2016 onwards. These costs, which will be funded from the Company’s cash balance, include ongoing administrative costs, office lease costs, financial, legal and other professional costs.
Stock Exchange Listing
At the Company’s request, the TSX Venture Exchange (“TSXV“) has agreed to delay the transfer of the Company’s listing to the NEX provided that the Company keeps the TSXV apprised of the status of its ongoing strategic review process.
About PRD
PRD’s common shares are listed on the TSXV with the symbol “PRD”. As of March 23, 2016, the Company had 143,908,116 common shares outstanding.