CALGARY, AB, Jan. 18, 2022 /CNW/ - Pan Orient Energy Corp.
("Pan Orient" or the "Company") (TSXV: POE) is pleased to announce
that it received shareholder approval today for its previously
announced capital reorganization. Over 99% of the votes cast were
in favor of the required special resolution.
Shareholder approval allowed Pan Orient's directors to set the
effective date for the reorganization and the record and payment
dates for the resulting $0.40 per
common share return of capital to shareholders. The record date
will be February 2, 2022 and the
effective and payment date will be February
10, 2022. The return of capital is expected to be generally
more tax advantageous to shareholders than a dividend.
The distribution to shareholders will be made in accordance with
the "due bill" trading procedures mandated by the TSX Venture
Exchange for large dividends and distributions. The purpose is to
result in traded shares carrying the value of the $0.40 distribution until it is paid.
A due bill will notionally represent the $0.40 distribution that a holder of a Pan Orient
share is entitled to receive. A due bill will attach to each share
traded, from the trading day before the record date for the
distribution until the date on which the distribution is paid.
During this due bill trading period, the shares will trade on a
"due bills basis". A seller of shares (who is prospectively
entitled to the $0.40 distribution)
will also sell to the purchaser the entitlement to the distribution
(which is represented by the due bill attached to each share
sold).
Key dates are:
- The record date to determine shareholders entitled to receive
the distribution will be February 2,
2022
- Due bill trading will commence on February 1, 2022 (one trading day before the
record date, so that trades settling after the record date have due
bills attached)
- The effective date of the reorganization and payment date for
the distribution will be February 10,
2022
- The ex-distribution date will be February 11, 2022 (the trading day after the
payment date, so that trades on and after that date will not have
due bills attached)
The aggregate amount of the return of capital will be
approximately $19.9 million. It
will be funded from Pan Orient's cash reserves. Pan Orient's
remaining cash reserves, plus ongoing cash flow from Concession L53
in Thailand, are expected to be
sufficient to fund its continuing business operations for the
remainder of 2022. Pan Orient anticipates that an updated corporate
presentation will be posted on its website in February or later,
after the December 31, 2021
independent reserves evaluation for the Thailand interest is finalized and there is
more certainty about other corporate developments being
pursued.
Pan Orient also intends to make a cash payment of $0.40 per restricted share unit to holders of Pan
Orient's 599,998 currently outstanding restricted share units and,
subject to regulatory approval, reduce by $0.40 the exercise price of Pan Orient's
2,865,000 currently outstanding options. The cash payment and
exercise price reduction is pursuant to Pan Orient's long term
incentive plan and stock option plan and is anticipated to be with
effect from the payment date for the $0.40 distribution to shareholders.
Pan Orient is a Calgary,
Alberta based oil and gas exploration and production company
with operations currently located onshore Thailand and in Western Canada.
This press release contains forward-looking information.
Forward-looking information is generally identifiable by the
terminology used, such as "plan", "intend", "expect", "believe",
"estimate", "should", "anticipate" and "potential" or other similar
wording. Forward-looking information in this press release
includes, but is not limited to, payment of the $0.40 return of capital on Pan Orient's common
shares; tax consequences; the aggregate amount of the return of
capital; the sufficiency of remaining cash reserves; funding needs
for continuing business operations; due bills trading procedure;
record, due bill trading, effective, payment and ex-distribution
dates for the return of capital; cash payment to holders of
restricted share units; and exercise price reduction of options. By
its very nature, the forward-looking information contained in this
press release requires Pan Orient and its management to make
assumptions that may not materialize or that may not be accurate.
In addition, the forward-looking information contained in this
press release is subject to known and unknown risks and
uncertainties and other factors, some of which are beyond the
control of Pan Orient, which could cause actual results,
expectations, achievements or performance to differ materially.
Although Pan Orient believes that the expectations reflected in its
forward-looking information are reasonable, it can give no
assurances that those expectations will prove to be correct. Pan
Orient undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
Neither 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.
SOURCE Pan Orient Energy Corp.