NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES ORDISSEMINATION IN UNITED STATES
CALGARY, Alberta, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Pieridae Energy Limited ("Pieridae" or the "Company") (TSX:PEA) is pleased to announce the successful completion of its previously announced equity rights offering (the "Rights Offering") to eligible holders of its common shares (the "Common Shares") of record at the close of business on September 9, 2024. The Rights Offering expired at 3:00 p.m. MDT on October 2, 2024, with the rights trading on the Toronto Stock Exchange ("TSX") under the symbol "PEA.RT" and having been de-listed on that date.
At closing, Pieridae issued an aggregate of 118,476,306 Common Shares pursuant to the Rights Offering and the Standby Commitment (as described below) at a price of $0.2448 per Common Share (the "Subscription Price") for aggregate gross proceeds of approximately $29 million. Following closing, Pieridae has 290,387,642 Common Shares issued and outstanding.
The Rights Offering resulted in 37,818,913 Common Shares issued pursuant to the exercise of rights under the basic subscription privilege and 61,251,034 Common Shares issued under the additional subscription privilege, for a total of 99,069,947 Common Shares issued to shareholders pursuant to the Rights Offering.
As previously announced, in connection with the Rights Offering, the Company entered into a standby purchase agreement (the "Standby Purchase Agreement") with Alberta Investment Management Corporation ("AIMCo"), an existing shareholder of Pieridae, pursuant to which AIMCo agreed to fully exercise its basic subscription privilege under the Rights Offering and to purchase up to an additional 77,625,434 Common Shares not otherwise subscribed for under the Rights Offering (the "Standby Commitment"). In addition to fully exercising its basic subscription privilege for 24,498,749 Common Shares and its additional subscription privilege for 58,219,075 Common Shares, AIMCo acquired 19,406,359 Common Shares pursuant to the Standby Commitment. Following closing of the Rights Offering, AIMCo owns approximately 47% of Pieridae's issued and outstanding Common Shares. Shareholder approval was not required in respect of AIMCo becoming a control person of Pieridae because it acquired Common Shares in accordance with the rights offering exemption under Section 2.1 of National Instrument 45-106 – Prospectus Exemptions, and because the Subscription Price was at a "significant discount" to the closing price of the Common Shares on the TSX on August 26, 2024, being the last trading day prior to the announcement of the Rights Offering.
To the knowledge of the Company after reasonable inquiry, insiders of Pieridae, including AIMCo, acquired 25,900,176 Common Shares under the basic subscription privilege and 59,879,790 Common Shares under the additional subscription privilege. To the knowledge of the Company after reasonable inquiry, no person that was not an insider of the Company before the Rights Offering became an insider as a result of the Rights Offering.
Pieridae intends to use the aggregate net proceeds from the Rights Offering and Standby Commitment to repay indebtedness, for working capital and general corporate purposes, and to fund certain value-accretive optimization projects.
"We are very pleased with the results of the Rights Offering and the Standby Commitment, which resulted in approximately $29 million equity proceeds for the Company. This is a strong endorsement by participating Pieridae shareholders in favour of our E&P and midstream strategy", commented Darcy Reding, the Company's President and Chief Executive ...
