CALGARY, AB, Nov. 8, 2021 /CNW/ – Tenaz Energy Corp. (“Tenaz” and the “Company“) (TSXV: TNZ) is pleased to announce that it has set November 15, 2021 as the date of record (the “Record Date“) for its previously announced rights (“Rights“) offering (the “Rights Offering“).
Each shareholder of common shares of the Company (“Common Shares“) on the Record Date will receive one (1) Right for each Common Share held by such shareholder. Each eight (8) Rights will entitle the holder to subscribe for one Common Share upon payment of a subscription price of $0.18 per Common Share. The Rights Offering will be made in all the provinces and territories of Canada (the “Eligible Jurisdictions“) and in such other jurisdictions where Tenaz is eligible to make such offering.
Subject to the receipt of final approval from the TSX Venture Exchange (“TSXV“), the Common Shares are expected to commence trading on the TSXV on an ex-rights basis at the opening of business on November 12, 2021. This means that Common Shares purchased on or following November 12, 2021 will not be entitled to receive Rights under the Rights Offering. At that time, the Rights are expected to be posted for trading on a “when issued” basis on the TSXV under the symbol “TNZ.RT”. The Rights Offering will expire at 4:00 p.m. (Calgary time) on December 13, 2021 (the “Expiry Time“), after which time unexercised Rights will be void and of no value.
Details of the Rights Offering will be set out in the rights offering notice (the “Notice“) and the rights offering circular (the “Circular“), which will be available under the Company’s profile at www.sedar.com and at www.tenazenergy.com. The Notice and accompanying Direct Registration System (DRS) statement (a “Rights Certificate“) will be mailed to each registered shareholder of the Company as at the Record Date that is a resident in the Eligible Jurisdictions. Registered shareholders who wish to exercise their Rights must forward the completed Rights Certificate, together with the applicable funds, to the rights agent, Odyssey Trust Company, on or before the Expiry Time. Shareholders resident in the Eligible Jurisdictions who own their Common Shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary. Rights Certificates will not be issued and forwarded to registered holders of Common Shares who are not resident in the Eligible Jurisdictions. Beneficial shareholders of the Company not resident in an Eligible Jurisdiction may also be restricted from participating in the Rights Offering. Shareholders who reside outside of the Eligible Jurisdictions should review the Circular for information respecting their Rights.
Pursuant to the Rights Offering, a total of 13,626,371 Common Shares are capable of being issued. Subscribers under the Company’s recently completed subscription receipt and unit private placements have agreed not to participate in the Rights Offering in respect of the securities subscribed for thereunder and have undertaken not to exercise, sell, trade or otherwise convey any interest in this Rights Offering. If all the Rights issued are validly exercised, the Rights Offering will raise gross proceeds of approximately $2.45 million, the net proceeds of which will be used for general corporate purposes, capital expenditures and acquisition of global oil and gas assets. Please see the Circular for additional information.
The completion of the Rights Offering is not subject to Tenaz receiving any minimum amount of subscriptions. The Rights Offering is subject to regulatory approval, including the approval of the TSXV. The Company has obtained conditional approval from the TSXV.
Holders of Rights will not be entitled under the terms of the Rights Offering to subscribe for additional Common Shares which are not subscribed for by other holders of Rights. In addition, there is no standby commitment which would otherwise allow a shareholder or third party to purchase the underlying Common Shares not otherwise subscribed for under the terms of the Rights Offering.