Market price

Gear Energy Ltd. announces that the market price will be used for the issuance of common shares upon redemption of debentures


CALGARY, AB, April 20, 2021 / CNW / – Gear Energy Ltd. (“Equipment“or the”Company“) (TSX: GXE) is pleased to announce that upon redemption of its currently outstanding 7.0% convertible unsecured subordinated debentures November 30, 2023 (the “Debentures“) ordinary shares of the Company (the”Ordinary actions“) will be issued to settle the principal amount of the debentures on the basis of a price of $ 0.49 per common share (the “Redemption issue price“). Accordingly, holders of Debentures who have not elected to convert their Debentures prior to the Redemption Date will receive approximately 2,041 Common Shares for each $ 1,000 principal amount of the debentures. As indicated in the press release and the redemption notice issued previously, the date of redemption of the Debentures will be April 26, 2021 (the “Repayment date“). Interest accrued and unpaid on the Debentures up to (but excluding) the redemption date will be paid in cash.

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Gear Energy Ltd. announces the market price that will be used for the issuance of common shares on the redemption of debentures (CNW Group / Gear Energy Ltd.)

Under the terms of the Debentures, the redemption issue price was calculated based on 95% of the volume weighted average price of the Common Shares on the Toronto Stock Exchange (the “TSX“) during the 20 consecutive trading days ending on April 19, 2021.

Each Holder will be entitled to convert its Debentures into Common Shares at a conversion price of $ 0.32 per common share (the “Conversion price“) at any time on or before April 23, 2021. A Holder who elects to convert the principal amount of his Debentures will receive 3,125 Common Shares for each $ 1,000 principal amount of converted debentures plus a cash payment for unpaid accrued interest up to, but excluding, the date of conversion.

No fractional shares will be issued on redemption or conversion, but, in lieu thereof, the Company will pay the cash equivalent thereof determined on the basis of the current price of the ordinary shares at the redemption date or conversion date, as the case may be (less any tax to be deducted, if applicable).

Since the Debentures were issued in “book-entry only” form and are held by CDS Clearing and Depository Services Inc., beneficial holders of Debentures should contact their broker, bank, trust company. or another nominee to exercise their right to convert their Bonds. Beneficial Holders who intend to convert their Debentures should be sure to contact their broker, broker, bank, trust company or other nominee well in advance of the redemption date to ensure they understand the procedure. required to exercise their conversion right. All holders of Debentures who fail to give notice of conversion on or before April 23, 2021 (or such earlier time as may be indicated by their broker, broker, bank, trust company or other nominee) will have their debentures redeemed on the redemption date and will receive the number of common shares obtained by dividing the price of redemption by the redemption price Issue price.

All amounts in this press release are in Canadian dollars, unless otherwise indicated.

SOURCE Gear Energy Ltd.

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