Petrus Announces Closing of Oversubscribed Rights Offering
May 02 2022 - 9:00AM
Petrus Resources Ltd. (TSX:PRQ) ("
Petrus" or the
"
Company") is pleased to announce that it has
completed its previously announced rights offering which expired on
April 26, 2022 (the "
Rights Offering"). The Rights
Offering received overwhelming support from the Company's
shareholders with 97% of the rights available under the basic
subscription privilege being exercised. Combined, the basic and
additional subscriptions totaled 184% of the common shares of the
Company ("
Common Shares") available through the
Rights Offering. At closing, Petrus issued approximately 14.8
million Common Shares at a price of $1.35 per Common Share for
gross proceeds of approximately $20 million.
As previously announced on March 24, 2022,
in connection with the Rights Offering, the Company entered into a
standby purchase agreement with each of Don Gray, Stuart Gray and
Glen Gray (collectively, the "Stand-By
Guarantors"). As a result of the exercise of the
basic subscription privilege and additional subscription privilege
by the holders of rights (including the Stand-By Guarantors), the
Stand-By Guarantors did not acquire any Common Shares in connection
with the Rights Offering pursuant to their stand-by
commitments.
A total of approximately 14.4 million Common
Shares were issued pursuant to the basic subscription privilege
granted under the Rights Offering, of which, to the knowledge of
the Company (after reasonable inquiry), approximately 10.9 million
Common Shares were issued to insiders of the Company and
approximately 3.5 million Common Shares were issued to non-insiders
of the Company. A total of approximately 0.4 million Common Shares
were issued pursuant to the additional subscription privilege
granted under the Rights Offering, of which, to the knowledge of
the Company (after reasonable inquiry), approximately 0.3 million
Common Shares were issued to insiders of the Company and
approximately 0.1 million Common Shares were issued to non-insiders
of the Company. Following the closing of the Rights Offering,
Petrus has approximately 121.7 million Common Shares issued and
outstanding.
There were no selling fees or commissions paid
in connection with the Rights Offering. The Rights
Offering is part of a larger debt restructuring strategy that is
intended to provide the Company with improved long-term stability
and increased liquidity. The net proceeds of the Rights Offering
will be used to repay amounts drawn under the Company's senior
secured credit facility as further detailed in the Rights Offering
Circular of the Company dated March 24, 2022, a copy of which is
available on the Company's SEDAR profile at www.sedar.com.
For inquiries please contact:
Ken GrayPresident and Chief Executive OfficerT: 403-930-0889E:
kgray@petrusresources.com
Website: www.petrusresources.com
About Petrus
Petrus is a public Canadian oil and gas company
focused on property exploitation, strategic acquisitions and
risk-managed exploration in Alberta.
Forward looking information: Certain information
set forth in this news release, including the use of proceeds from
the Rights Offering and the ability of the Company's debt
restructuring strategy to provide the Company with improved
long-term stability and increased liquidity, is considered
forward-looking information, and necessarily involve risks and
uncertainties, certain of which are beyond Petrus' control. Such
risks include but are not limited to the risk that the Company may
reallocate the net proceeds from the Rights Offering from the use
of proceeds described in the Company's rights offering circular and
the risk that the Company does not realize the anticipated benefits
of its debt restructuring strategy. Actual results, performance or
achievements could differ materially from those expressed in, or
implied by, the forward-looking information and, accordingly, no
assurance can be given that any events anticipated by the
forward-looking information will transpire or occur, or if any of
them do so, what benefits that Petrus will derive therefrom. With
respect to forward-looking information contained herein, the
Company has made certain assumptions, including that the Company
will be able to deploy the net proceeds from the Rights Offering as
anticipated and that the Company can complete its debt
restructuring strategy. Additional information on these and other
factors that could affect Petrus are included in reports on file
with Canadian securities regulatory authorities, including under
the heading "Risk Factors" in the Rights Offering Circular and in
the Company’s most recent annual information form, and may be
accessed through the SEDAR website (www.sedar.com). Furthermore,
the forward-looking information contained in this news release are
made as of the date of this document, and Petrus does not undertake
any obligation to update publicly or to revise any of the included
forward looking information, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities law.
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