Private Investor Acquires 19.96% of the Shares of Cequence Energy Ltd.
June 27 2019 - 7:31PM
Mr. G.A. Cumming announces the acquisition of 7,737,108 common
shares (“Common Shares”) of Cequence Energy Ltd. (“Cequence”) as
part of a larger private placement of flow-through common shares of
Cequence (the “Private Placement”) completed today. Under the
Private Placement, Cequence issued a total of 17,230,769 common
shares, all on a flow-through basis in accordance with to the
Income Tax Act (Canada), at a subscription price of $0.65 per
share, for aggregate gross proceeds of $11.2 million. The aggregate
consideration paid by Mr. Cumming in respect of the 7,737,108
Common Shares he subscribed for under the Private Placement was
$5,029,120.
Prior to the Private Placement, Mr. Cumming
owned or controlled 601,476 Common Shares, or 2.4% of the
outstanding Common Shares prior to the Private Placement. Following
the Private Placement, Mr. Cumming owns or controls a total of
8,338,584 Common Shares, representing 19.96% of the total number of
currently outstanding Common Shares.
Cequence intends to use the proceeds of the
Private Placement to incur “Canadian development expenses” as
defined in the Income Tax Act (Canada) (“CDE”). Mr. Cumming, along
with the other subscribers of the Common Shares issued under the
Private Placement, will be entitled to renunciations from Cequence
of CDE with an effective date on or prior to June 27, 2021. Mr.
Cumming acquired his Common Shares under the Private Placement for
investment purposes, including the entitlement to renunciations of
CDE. Depending on market and other conditions, Mr. Cumming may in
the future increase or decrease his beneficial ownership, control
or direction over Common Shares of Cequence through market
transactions, private agreements, treasury issuances, or
otherwise.
The Common Shares are traded on the Toronto
Stock Exchange under the symbol “CQE”.
Address of G.A. Cumming
c/o McCarthy Tétrault LLPSuite 4000421 7th
Avenue S.W.Calgary, Alberta T2P 4K9(403) 260-3553
Address of Cequence Energy Ltd.
Suite 1400, 215 9th Avenue S.W.Calgary,
Alberta T2P 1K3