CALGARY, Sept. 18, 2018 /CNW/ - Gear Energy Ltd.
("Gear") (TSX: GXE) is pleased to announce the successful
completion of the acquisition of Steppe Resources Inc.
("Steppe"), a private oil and gas company, pursuant to the
previously announced plan of arrangement (the
"Arrangement"). Pursuant to the Arrangement, shareholders of
Steppe received 0.1445 of a Gear common share ("Gear Share")
for each Steppe common share ("Steppe Share"). As a
result, Gear issued approximately 21.9 million Gear Shares.
Concurrent with the closing of the Arrangement, Gear entered
into an amending agreement in respect of its existing syndicated
credit agreement, providing for an increase of the senior secured
credit facilities by $40 million to
an aggregate principal amount of up to $115
million, of which approximately $69
million has been drawn, net of cash on hand, as at the date
hereof, which includes Steppe's net debt that was assumed pursuant
to the Arrangement after taking into account expected Steppe
transaction costs. Steppe's senior secured credit facility has been
re-paid in full and terminated in connection with the closing of
the Arrangement.
Shareholders whose Steppe Shares are held by a broker, agent or
other intermediary should contact their broker or agent in respect
of the exchange of their Steppe Shares pursuant to the
Arrangement. Registered holders of Steppe Shares must deposit
their certificates with a duly completed letter of transmittal in
order to receive their Gear Shares, as set forth in the management
information circular and proxy statement of Steppe dated
August 24, 2018. Certificates
formerly representing Steppe Shares now represent only the right to
receive Gear Shares to which the holders thereof are entitled
pursuant to the Arrangement.
SOURCE Gear Energy Ltd.