CALGARY, Dec. 16, 2015 /CNW/ – (TSX: PMT; PMT.DB.E) – Perpetual Energy Inc. (“Perpetual” or the “Company“) announces that the conversion price of the outstanding 7.00% convertible unsecured subordinated junior debentures (the “Convertible Debentures“) of the Company has been adjusted from $7.00 to $3.34 (the “Initial Conversion Price Adjustment“). This Initial Conversion Price Adjustment is required pursuant to the terms of the Convertible Debentures as a consequence of the Company’s previously announced rights offering (“Rights Offering“).
For a detailed description of the calculation used to determine the Initial Conversion Price Adjustment, please refer to the (final) short form prospectus of the Company date December 7, 2015 (the “Prospectus“) available on the Company’s profile at www.sedar.com.
The “current market price” used to calculate the Initial Conversion Price Adjustment is $0.24 per common share of the Company (“Common Share“) and was calculated as the volume weighted average trading price of the Common Shares for the 20 consecutive trading days ending on December 9, 2015, the fifth trading day preceding the record date of the Rights Offering, being December 16, 2015.
As a result of the Rights Offering, the board of directors of Perpetual has determined that the conversion price of the Convertible Debentures will be re-adjusted immediately after the Common Shares Per Right Calculation (as defined in the Prospectus) is completed on December 22, 2015 in accordance with the same formula used to calculate the Initial Conversion Price Adjustment and that the “Current Market Price” will be updated to be the same as that for the Rights Offering, being the volume weighted average trading price of the Common Shares for the 20 consecutive trading days ending on December 22, 2015. The Company will announce the final adjustment to the conversion price of the Convertible Debentures on December 22, 2015, in conjunction with the announcement of additional details concerning the Rights Offering, specifically being the number of shares that will be issued as a result of the Rights Offering.