CALGARY, Alberta, June 27, 2019 (GLOBE NEWSWIRE) -- Mr. G.A. Cumming announces the acquisition of 7,737,108 common shares (“Common Shares”) of Cequence Energy Ltd. (“Cequence”) as part of a larger private placement of flow-through common shares of Cequence (the “Private Placement”) completed today. Under the Private Placement, Cequence issued a total of 17,230,769 common shares, all on a flow-through basis in accordance with to the Income Tax Act(Canada), at a subscription price of $0.65 per share, for aggregate gross proceeds of $11.2 million. The aggregate consideration paid by Mr. Cumming in respect of the 7,737,108 Common Shares he subscribed for under the Private Placement was $5,029,120.
Prior to the Private Placement, Mr. Cumming owned or controlled 601,476 Common Shares, or 2.4% of the outstanding Common Shares prior to the Private Placement. Following the Private Placement, Mr. Cumming owns or controls a total of 8,338,584 Common Shares, representing 19.96% of the total number of currently outstanding Common Shares.
Cequence intends to use the proceeds of the Private Placement to incur “Canadian development expenses” as defined in the Income Tax Act (Canada) (“CDE”). Mr. Cumming, along with the other subscribers of the Common Shares issued under the Private Placement, will be entitled to renunciations from Cequence of CDE with an effective date on or prior to June 27, 2021. Mr. Cumming acquired his Common Shares under the Private Placement for investment purposes, including the entitlement to renunciations of CDE. Depending on market and other conditions, Mr. Cumming may in the future increase or decrease his beneficial ownership, control or direction over Common Shares of Cequence through market transactions, private agreements, treasury issuances, or otherwise.
The Common Shares are traded on the Toronto Stock Exchange under the symbol “CQE”.
Address of G.A. Cumming
c/o McCarthy Tétrault LLP
421 7th Avenue S.W.
Calgary, Alberta T2P 4K9
Address of Cequence Energy Ltd.
Suite 1400, 215 9th Avenue S.W.
Calgary, Alberta T2P 1K3