This press release is being issued pursuant to section 5.2 of
National Instrument 62-104 -Take-Over Bids and Issuer Bids.
CALGARY, Feb. 26, 2020 /CNW/ - Paramount Resources Ltd.
("Paramount") has acquired $900,000 in principal amount of 12.0% secured
convertible debentures ("Convertible Debentures") of
Canadian Premium Sand Inc. ("CPS"; TSXV: CPS). The
acquisition was made as part of a private placement of an aggregate
of $1,975,000 in principal amount of
Convertible Debentures completed by CPS on February 26, 2020 (the "Private
Placement").
The Convertible Debentures mature on February 26, 2024 and may be converted at the
option of the holder into common shares of CPS ("Common
Shares") at any time prior to maturity at a conversion price of
$0.75 per Common Share. If
Paramount were to convert all of the Convertible Debentures held by
it, it would acquire 1,200,000 Common Shares, representing
approximately 5.35% of the outstanding Common Shares after giving
effect to such conversion.
Paramount has direct ownership and control of 2,759,394 Common
Shares, representing approximately 13% of the 21,224,460 issued and
outstanding Common Shares. If Paramount were to convert all
of the Convertible Debentures held by it, it would have direct
ownership and control of 3,959,394 Common Shares, representing
approximately 17.66% of the outstanding Common Shares after giving
effect to such conversion.
The Convertible Debentures were acquired by Paramount for
investment purposes. Depending on the evolution of CPS's business,
financial condition, the market, if any, for CPS's securities,
general economic conditions and other factors, Paramount may
acquire additional CPS securities, or sell CPS securities it owns,
controls or directs, in the open market, by private agreement or
otherwise, subject to market conditions and other relevant
factors.
SOURCE Paramount Resources Ltd.