REG - Southern Energy Corp - AMENDMENTS TO OUTSTANDING CONVERTIBLE DEBENTURES

Southern EnergyAnnouncement

14/06/2024 07:00

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RNS Number : 4075S  Southern Energy Corp.  14 June 2024

SOUTHERN ENERGY CORP. ANNOUNCES AMENDMENTS TO

OUTSTANDING CONVERTIBLE DEBENTURES

 

Calgary, Alberta - June 14, 2024 - Southern Energy Corp. ("Southern" or the
"Company") (TSXV:SOU) (AIM:SOUC) (OTCQX:SOUTF) announces it has received an
extraordinary resolution from the holders (the "Debentureholders") of its
outstanding convertible unsecured subordinated debentures (the "Debentures")
approving certain amendments to the debenture indenture entered into between
the Company and Computershare Trust Company of Canada (the "Trustee")
dated June 14, 2019, as amended by a first supplemental indenture dated June
30, 2021, to: (a) extend the maturity date of the Debentures by one year
to June 30, 2025; and (b) increase the interest on the Debentures from 8.00%
to 10.00% per annum commencing on June 30, 2024 (together, the "Debenture
Amendments").

Pursuant to receipt of the extraordinary resolution from the Debentureholders,
Southern will enter into a second supplemental indenture (the "Second
Supplemental Indenture") with the Trustee to effect the Debenture Amendments
on or prior to June 30, 2024.  As at the date hereof, the Company has 4,286
Debentures outstanding at face value of C$1,000 each.

As a condition of the Debentureholders' approval of the Debenture Amendments,
the Company will issue a total of 1,863,478 common share purchase warrants
(the "Warrants") to the Debentureholders for no additional consideration, with
each Warrant entitling the Debentureholder to purchase one common share of the
Company at a price of C$0.25 for a period of 12 months from the date of
issuance. The Warrants, and any common shares issued upon the exercise of the
Warrants, will be subject to a statutory four month and one day hold period
from the date of issuance.

The completion of the Debenture Amendments and the issuance of the Warrants
remain subject to final acceptance of the TSX Venture Exchange (the "TSXV").

A copy of the Second Supplemental Indenture will be filed under the Company's
profile on SEDAR+ at www.sedarplus.ca
(https://url.avanan.click/v2/___http:/www.sedarplus.ca___.YXAzOnNvdXRoZXJuZW5lcmd5Y29ycDphOm86MjE4YzExZjdlMTk3Mjk2ZTM3NGZhZDAwN2FjZDcxZDg6Njo1NWFiOmZjOWJkN2EzOWUzNzBhYTBiYTU3OTYyMGZhNjY1YTFiNDE1N2M2ODFkYWI1YzQxMWM2MmIzMTliMDY4NGUwY2Q6cDpU)
.

For further information about Southern, please visit our website at
www.southernenergycorp.com
(https://url.avanan.click/v2/___http:/www.southernenergycorp.com___.YXAzOnNvdXRoZXJuZW5lcmd5Y29ycDphOm86MzA2NjE2OWIxMDBjM2FjM2I3ZjZhZDA1OGM0NTUwODU6NjpkYzc5OmExY2U1YzQxYTI4YWQ0NjQ0MWZhZThlYTdkZDdlNzlkNDI1NDQ5MjllNjk0M2QyOGFmNWQzZWIxZTRkMTJkNTQ6cDpU)
or contact:

 

  Southern Energy Corp.
  Ian Atkinson (President and CEO)                            +1 587 287 5401
  Calvin Yau (CFO)                                            +1 587 287 5402

  Strand Hanson Limited - Nominated & Financial Adviser       +44 (0) 20 7409 3494
  James Spinney / James Bellman / Rob Patrick

  Stifel Nicolaus Europe Limited - Joint Broker               +44 (0) 20 7710 7600
  Callum Stewart / Ashton Clanfield

  Tennyson Securities - Joint Broker                          +44 (0) 20 7186 9033
  Peter Krens / Pav Sanghera

  Camarco                                                     +44 (0) 20 3757 4980
  Owen Roberts / Billy Clegg / Hugo Liddy

 

About Southern Energy Corp.

Southern Energy Corp. is a natural gas exploration and production company
characterized by a stable, low-decline production base, a significant low-risk
drilling inventory and strategic access to premium commodity pricing in North
America. Southern has a primary focus on acquiring and developing conventional
natural gas and light oil resources in the southeast Gulf States of
Mississippi, Louisiana, and East Texas. Our management team has a long and
successful history working together and have created significant shareholder
value through accretive acquisitions, optimization of existing oil and natural
gas fields and the utilization of re-development strategies utilizing
horizontal drilling and multi-staged fracture completion techniques.

READER ADVISORIES

Forward Looking Statements. Certain information included in this press release
constitutes forward-looking information under applicable securities
legislation. Forward-looking information typically contains statements with
words such as "anticipate", "believe", "expect", "plan", "intend", "estimate",
"propose", "project", "budget", "continue", "evaluate", "forecast", "may",
"will", "can", "target" "potential", "result", "could", "should" or similar
words suggesting future outcomes or statements regarding an outlook.
Forward-looking information in this press release may include, but is not
limited to, statements concerning the Debenture Amendments, including the
execution of the Second Supplemental Indenture, the issuance of the Warrants,
the issuance of Common Shares to settle the Company's Interest Obligations,
and the approval of the TSXV. The forward-looking statements contained in this
press release are based on certain key expectations and assumptions made by
Southern, including receipt of the required approvals from the TSXV. Although
Southern believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Southern can give no
assurance that they will prove to be correct. Since forward-looking statements
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks, including
the risks set out in more detail in Southern's management discussion and
analysis and annual information form for the year ended December 31, 2023, and
the Company's management discussion and analysis for the period ended March
31, 2024, copies of which are available on the Company's website at
www.southernenergycorp.com and filed under the Company's profile on SEDAR+ at
www.sedarplus.ca.

The forward-looking information contained in this press release is made as of
the date hereof and Southern undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, unless required by applicable
securities laws. The forward-looking information contained in this press
release is expressly qualified by this cautionary statement.

 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.

 

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