CALGARY, AB, Nov. 2, 2020
/CNW/ - Stampede Drilling Inc. ("Stampede") announces
that it has completed the previously announced restructuring of the
terms of its 10.00% convertible unsecured debentures (the
"Debentures") and has amended the terms of the Debentures
to:
- extend the maturity date of the Debentures to October 31, 2023;
- lower the conversion price ("Conversion Price") of the
Debentures from $0.49 to $0.21 per common share ("Common
Share") of Stampede, subject to adjustment in accordance
with the terms and conditions of the Debentures;
- provide Stampede with the ability to pay accrued interest in
Common Shares based on the average trading price of the Common
Shares over the previous 30 trading days (subject to the prior
approval from the TSX Venture Exchange ("TSXV")); and
- update the redemption thresholds in the Debentures, such that
Stampede: (i) may not redeem the Debentures prior to October 31, 2021; (ii) may redeem the Debentures
on and after October 31, 2021 and
prior to October 31, 2022 at the
Redemption Price (as defined in the Debentures), provided the
current market price of the Common Shares is at least 125% of the
Conversation Price; and (iii) may redeem the Debentures on and
after October 31, 2022 at the
Redemption Price, (collectively, the "Amendments").
Stampede entered into amending agreements with 100% of the
holders (the "Debentureholders") of Debentures effective as
of October 31, 2020, whereby Stampede
and the Debentureholders agreed to implement the Amendments to the
Debentures.
Additionally, Stampede has received conditional approval of the
Amendments from the TSXV, with final TSXV approval subject to the
completion of certain final filing requirements.
About Stampede
Stampede is a public company engaged in the provision of
drilling rig services to the oil and natural gas industry in
North America. Stampede's current
principal markets for its services are the provinces of
Saskatchewan, Alberta and British
Columbia.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
ADVISORY ON FORWARD-LOOKING STATEMENTS:
This news release contains forward-looking statements and
information ("forward-looking statements") within the
meaning of applicable securities laws and is based on the
expectations, estimates and projections of management of Stampede
as of the date of this news release, unless otherwise stated. The
use of any of the words "expect", "anticipate", "continue",
"estimate", "objective", "ongoing", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking statements. More
particularly and without limitation, this news release contains
forward-looking statements concerning the final approval of the
Amendments by the TSXV. Such forward-looking statements are
provided for the purpose of providing information about
management's current expectations and plans relating to the future.
Investors are cautioned that reliance on such information may not
be appropriate for other purposes, such as making investment
decisions.
The forward-looking statements address future events and
conditions and, as this is the case, such information by its very
nature involves inherent risks and uncertainties. Actual results
could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to,
the risks associated with the failure to successfully secure the
TSXV's final approval of the Amendments in a timely manner, or at
all.
Readers are cautioned that the foregoing list of factors is not
exhaustive. The reader is cautioned not to place undue reliance on
these forward-looking statements. The forward-looking statements
contained in this news release are made as of the date hereof and
Stampede undertakes no obligations to update publicly or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
SOURCE Stampede Drilling Inc.