00:53:31 EDT Wed 29 May 2024
Enter Symbol
or Name

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Cathedral Energy Services Ltd
Symbol CET
Shares Issued 242,025,173
Close 2023-05-05 C$ 0.83
Market Cap C$ 200,880,894
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Cathedral receives $16-million from exercised warrants

2023-05-08 09:27 ET - News Release

Mr. Tom Connors reports


Cathedral Energy Services Ltd. has received cumulative, aggregate proceeds of $16-million from the exercise of 18,837,888 common share purchase warrants that expired on April 25, 2023. The warrants had an exercise price of 85 cents and were issued in connection with Cathedral's $26.4-million bought deal financing that closed on April 25, 2022. Each full warrant entitled the holder to one common share in the company upon exercise. Approximately 99.7 per cent of outstanding warrants were exercised, with 88.6 per cent of the total exercised in April, 2023. Following the warrant exercises, the company has 242,025,173 common shares outstanding. The proceeds from the exercised warrants add to a balance sheet that has already strengthened considerably from July, 2022, when Cathedral purchased Altitude Energy Partners for $100-million (U.S.). Estimated loans and borrowings less cash as at March 31, 2023, and including pro forma April, 2023, warrant proceeds total approximately $43.4-million, which compares with approximately $69.3-million as at Dec. 31, 2022. Cathedral has used the proceeds realized in April to pay off the $13-million owing on its syndicated operating facility.

Cathedral's president and chief executive officer, Tom Connors, said, "The exercise of the vast majority of warrants is an endorsement by shareholders of our consolidation strategy and only strengthens our balance sheet and financial flexibility going forward as we continue to execute on our plan."

Management update

Cathedral has added Mike Hearn to the senior management team of the company. Mr. Hearn joined recently as senior vice-president, corporate development.

Mr. Connors added: "Mike has a successful track record in Canadian capital markets, most recently as chief financial officer of Storm Resources Ltd., before it was purchased by Canadian Natural Resources Ltd. in December, 2021, for an enterprise value upon deal announcement of just under $1-billion. Mike is a chartered accountant by background and brings financial acumen, a proven track record and a solid industry reputation to our company, alongside interim CFO Scott MacFarlane. We continue to add accomplished people to our team to manage the exceptional growth in revenue and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] since early 2021. Welcome aboard."

About Cathedral Energy Services Ltd.

Cathedral Energy Services is incorporated under the Business Corporations Act (Alberta) and operates in the United States under Discovery Downhole Services and Altitude Energy Partners. Cathedral is a trusted partner to North American energy companies requiring high-performance directional drilling services. The company works in partnership with its customers to tailor its equipment and expertise to meet their specific geographical and technical needs. Cathedral's experience, technologies and responsive personnel enable its customers to achieve higher efficiencies and lower project costs.

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