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Surge Energy Inc (2)
Symbol SGY
Shares Issued 83,357,221
Close 2022-09-22 C$ 8.73
Recent Sedar Documents

Surge Energy to redeem 5.75% debentures on Oct. 28

2022-09-22 17:32 ET - News Release

Mr. Paul Colborne reports

SURGE ENERGY INC. ANNOUNCES NOTICE OF REDEMPTION OF 5.75% CONVERTIBLE DEBENTURES

Surge Energy Inc. is issuing a notice of redemption to holders of its currently outstanding $44.5-million 5.75 per cent convertible unsecured subordinated debentures due Dec. 31, 2022. The debentures are not subject to a prepayment penalty.

As set out in the notice of redemption, Surge will redeem, as of Oct. 28, 2022, all of the aggregate principal amount of the debentures for cash. On the redemption date, Surge will pay the aggregate principal amount of the debentures (being $1,000 for each debenture) plus all accrued and unpaid interest thereon to but excluding the redemption date (less any tax required to be deducted). The debentures are listed on the Toronto Stock Exchange under the symbol SGY.DB (CUSIP 86880YAA7).

In accordance with the terms of the indenture governing the debentures, holders of the debentures have the right to convert their debentures, at their option, into common shares of Surge at a conversion price of approximately $23.23 per Surge share at any time prior to 5 p.m. Calgary time on Oct. 27, 2022. A holder electing to convert the principal amount of their debentures will receive approximately 43 Surge shares per $1,000 principal amount of debentures converted plus a cash payment for accrued unpaid interest up to, but excluding, the date of conversion (less any tax required to be deducted). No fractional shares will be issued on conversion but, in lieu thereof, the company will pay the cash equivalent thereof determined on the basis of the current market price (as defined in the indenture governing the debentures) of the Surge shares on the date of conversion.

All holders of debentures who fail to deliver a notice of conversion on or prior to 5 p.m. Calgary time on October 27, 2022 (or such other earlier time as may be indicated by their broker, dealer, bank, trust company or other nominee) will have their debentures redeemed on the redemption date for a cash payment equal to the redemption price.

As all of the debentures were issued in "book-entry only" form and are held by CDS Clearing and Depository Services Inc., beneficial holders of debentures must contact their broker, dealer, bank, trust company or other nominee to exercise their right to convert their debentures.

About Surge Energy Inc.

Surge is an intermediate publicly traded oil company focused on enhancing shareholder returns through free cash flow generation. The company's defined operating strategy is based on acquiring and developing high-quality conventional oil reservoirs using proven technology to enhance ultimate oil recoveries.

We seek Safe Harbor.

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