CALGARY, AB, Sept. 14, 2020 /CNW/ - Stampede Drilling Inc.
("Stampede") announces that it has received final approval
from the TSX Venture Exchange to restructure the terms of its
10.00% convertible unsecured debentures (the
"Debentures").
Under the terms of the amending agreements Stampede intends to
enter into with the holders of Debentures effective as of
October 31, 2020 (collectively, the
"Amending Agreements"):
- the term of the Debentures will be extended by three years,
such that the Debentures will mature in October 2023;
- the conversion price ("Conversion Price") of the
Debentures will be lowered 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;
- Stampede will be able 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); and
- the redemption thresholds in the Debentures will be updated,
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.
Stampede expects to enter into Amending Agreements with all
debentureholders; however, in the event any debentureholder elects
not to enter into an Amending Agreement, such debentureholders'
Debentures will continue to be in effect in accordance with their
current terms.
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 intention of entering
into the Amending Agreements; and the ability of Stampede to enter
into Amending Agreements with each of the debentureholders. 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 enter into
Amending Agreements with the remaining debentureholder 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.