Gear Energy to redeem 7% convertibles on April 26 using market price

Chicago, April 20 – Gear Energy Ltd. said that it will use the market price for the redemption of its 7% convertibles subordinated debentures due Nov. 30, 2023 being redeemed on April 26, according to a press release.

This means that the market price of C$0.49 per common share will be used and as a result debentureholders will receive 2,041 common shares for each C$1,000 principal amount of note.

Interest up to the date of redemption will be paid in cash.

The redemption price was calculated based on 95% of the volume weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on April 19.

Holders have the rights to convert their debentures at a conversion price of C$0.32 at any time before April 23. Based on this election, debentureholders would receive 3,125 common shares for each C$1,000 note, plus interest paid in cash.

After the last conversion, according to the Prospect News archive, there were C$3.4 million of the debentures outstanding.

Calgary, Alta.-based Gear Energy is a heavy oil focused publicly traded exploration and production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.