CALGARY, Alberta – Cequence Energy Ltd. (“Cequence” or “the Company“) announces that the previously announced plan of compromise and arrangement (the “Plan”) of the Company, under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) was sanctioned today by order of the Court of Queen’s Bench of Alberta (the “Court”) under the CCAA.
Cequence’s creditors approved the Plan at a creditors’ meeting held on Tuesday September 15, 2020. At the creditors’ meeting 100% of the votes cast by the secured creditors, voting as a class, and approximately 97% of the votes cast by the unsecured creditors, voting as a class, were in favour of the plan. In each case, a majority in number of creditors who voted in such class voted in favour of the Plan.
Implementation of the Plan remains subject to the satisfaction or waiver of the other conditions to its effectiveness. The Company expects to emerge from CCAA as a private oil and natural gas company by September 30, 2020.
Continuous Disclosure Update
Cequence has relied on the exemptive relief granted by Canadian securities regulatory authorities in light of the COVID-19 pandemic (the “Exemptive Relief”) that allowed it to delay the filing of its interim financial report for the period ended June 30, 2020 as required by section 4.4 of National Instrument 51-102 and related management’s discussion & analysis as required by subsection 5.1(2) of National Instrument 51-102 (collectively, the “Q2 Filings”). Cequence’s management and other insiders are subject to a trading blackout that reflects the principles contained in section 9 of National Policy 11-207 – Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions. Except as previously announced by Cequence in connection with its proceedings under the CCAA, there have been no material business developments since the date of Cequence’s unaudited interim consolidated financial statements for the three months ended March 31, 2020 and 2019 that were filed on May 14, 2020, a copy of which is available on SEDAR at www.sedar.com.
Implementation of the Plan is expected to be completed by September 30, 2020 and will result in the Plan Sponsors (as defined in the Plan) controlling all of the issued and outstanding common shares of Cequence. The Company intends to submit an application to cease to be a reporting issuer to the relevant Canadian securities authorities promptly after implementation of the Plan is completed. Given this change in the shareholder base of Cequence, the Company does not intend to file its interim financial report for the interim period ended June 30, 2020.
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.
The TSX has neither approved nor disapproved the contents of this news release.