In This Article:
Calgary, Alberta--(Newsfile Corp. - March 4, 2025) - Cardinal Energy Ltd. (TSX: CJ) ("Cardinal" or the "Company") is pleased to announce that it has completed its previously announced offering (the "Offering") of senior subordinated unsecured debentures ("Debentures") with a syndicate of underwriters co-led by CIBC Capital Markets, RBC Capital Markets and ATB Capital Markets, with CIBC Capital Markets and RBC Capital Markets acting as joint-bookrunners, and including BMO Capital Markets, Peters & Co. Limited, Canaccord Genuity Corp. and Raymond James Ltd. (collectively, the "Underwriters"), on a bought deal basis.
In connection with the Offering, Cardinal issued $40 million of Debentures, plus an additional $5 million of Debentures issued on the full exercise of the option granted to the Underwriters to increase the total size of the Offering to $45 million.
The Debentures bear interest at a rate of 8.25% per annum, payable semi-annually in arrears on the last day of March and September of each year, commencing on September 30, 2025, and will mature on September 30, 2030. The Debentures will commence trading today on the Toronto Stock Exchange under the symbol "CJ.DB.A".
The Company intends to use the net proceeds of the Offering to first repay and reduce the indebtedness of its outstanding senior credit facility, then to de-risk the completion of the Company's Reford thermal facility and accelerate the de-risking of the Company's Kelfield thermal oil opportunity. As well the Company may use some of the proceeds for land and seismic acquisitions to delineate other thermal oil opportunities available to the Company.
This new release is not an offer of securities of Cardinal for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and the securities may not be offered or sold in the United States except pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to Cardinal's plans and other aspects of Cardinal's anticipated future operations, management focus, objectives, strategies, financial, operating and production results. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend", "may", "would", "could" or "will" or similar words suggesting future outcomes, events or performance. The forward-looking statements contained in this press release speak only as of the date thereof and are expressly qualified by this cautionary statement. Specifically, this press release contains forward-looking statements relating to the anticipated use of proceeds of the Offering and the timing for the trading of the Debentures on the Toronto Stock Exchange.