CALGARY, Alberta, June 27, 2019 (GLOBE NEWSWIRE) — Cequence Energy Ltd. (“Cequence” or the “Company”) (TSX: CQE) is pleased to announce the successful completion today of its previously announced private placement of common shares (the “Private Placement”), $10 million principal repayment on its $60 million term loan, as well as the results of its Annual General and Special meeting of shareholders.
Under the Private Placement, Cequence issued a total of 17,230,769 flow-through common shares (the “Common Shares”) at a subscription price of $0.65 per Common Share for gross proceeds of $11.2 million. The Company intends to use the proceeds to incur “Canadian development expenses” as defined in the Income Tax Act (Canada) (“CDE”). The subscribers of the Common Shares issued under the Private Placement will be entitled to renunciations from the Company of CDE with an effective date on or prior to June 27, 2021.
In connection with the Private Placement, Mr. G.A. Cumming subscribed for 7,737,108 Common Shares and now holds a total of 8,338,584 Common Shares of Cequence, representing 19.96% of the total number of issued and outstanding common shares following the Private Placement.
The Private Placement was subject to approval by a majority of the Company’s shareholders, excluding votes cast by shareholders and their affiliates who participated in the Private Placement.
Debt Prepayment and Amendment
In accordance with the terms of the first amending agreement dated May 23, 2019 (the “Amending Agreement”) between Cequence and the holders of its $60 million term loan, the Company has also completed the prepayment of $10.0 million of principal, plus accrued interest, on the Term Loan. The Amending Agreement amends certain provisions of the Term Loan, as described in more detail in the Company’s press release dated May 23, 2019.
Annual General and Special Meeting of Shareholders
Cequence held its Annual General and Special Meeting of shareholders (the “Meeting”) in Calgary today. A total of 9,456,068 common shares of the Company, representing approximately 39% of the issued and outstanding common shares, were represented in person or by proxy at the Meeting.
At the Meeting, each of the six nominees proposed by management was elected to serve as a director of the Company, to hold office until the close of the next annual meeting of shareholders or until his successor is elected or appointed. The directors were elected by ballot at the meeting. The proxies and in person votes received were as follows:
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Cequence’s shareholders also voted in favour of all other items of business put forward at the meeting, including the Private Placement, the approval of all unallocated stock options and restricted share units issuable pursuant to the Company’s Stock Option Plan and Restricted Share Unit Plan, and the re-appointment of Deloitte LLP as the Company’s auditors, with each resolution receiving 90% or more of the votes cast in person or by proxy at the meeting :
OVERVIEW OF CEQUENCE
Cequence is engaged in the exploration for and the development of oil and natural gas reserves. The Company’s primary focus is the development of its Simonette asset in the Alberta Deep Basin with other non-core assets in Northeast British Columbia and the Peace River Arch of Alberta. Further information can be found at www.cequence-energy.com.