Reduction of Share Capital - Update
EASTLEIGH, UNITED KINGDOM / ACCESSWIRE / June 20, 2024 / i3 Energy PLC (AIM:I3E)(TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, announces the following update to its proposed reduction of share capital.
Proposed Capital Reduction - Next Steps and Timetable
Terms used in this announcement have the same meaning given in the shareholder circular of the Company dated 25 March 2024 unless otherwise defined in this announcement.
At the General Meeting held on 15 April 2024 the shareholders approved a resolution to allow, among other things, the Capital Reduction. The proposed Capital Reduction is intended to increase retained earnings in order to create further distributable reserves in the Company to facilitate the future payment of dividends (in cash or otherwise) to Shareholders, where justified by the profits of the Company, or to allow the redemption or buy-back of the Company's shares (or other distributions to Shareholders).
The proposed Capital Reduction is subject to the scrutiny of, and confirmation by, the High Court of England and Wales (the "High Court") which will take due account of the protection of creditors.
On 12 June 2024, the initial directions hearing in relation to the Capital Reduction took place. It is currently expected that the final Court Hearing will take place on 2 July 2024. Subject to that confirmation of the Capital Reduction at the Court Hearing and registration by the Registrar of Companies in England and Wales of the order of the High Court, the Capital Reduction is expected to take effect as per the timetable below.
The Board anticipates that the Capital Reduction will result in the creation of distributable reserves; however, this is subject to: (i) there being no materially negative change in the financial position or prospects of the Company; and (ii) any provision that the Court requires the Company to make for the protection of its creditors (although the Board does not expect any undertakings or similar measures to be required). This will give the Company the maximum flexibility to consider the payment of dividends and otherwise return value to Shareholders, should the Board consider it appropriate. It should however be noted that if the Company is required to give undertakings to the Court, this may delay the Company's ability to pay dividends and otherwise return value to Shareholders.
Following the implementation of the Capital Reduction, there will be no change in the nominal value of the Company's shares or the number of shares in issue. The Capital Reduction will not involve any distribution or repayment of share premium by the Company and will not reduce the underlying net assets of the Company.
The Directors reserve the right to abandon or discontinue any application to the High Court for confirmation of the Capital Reduction if the Directors believe that the terms required to obtain confirmation are unsatisfactory to the Company or if, as the result of a material unforeseen event, the Directors consider that to continue with the Capital Reduction would be inappropriate or inadvisable.
Timetable of Principal Events
The expected timetable of principal events with respect to the Capital Reduction are as follows:
PRINCIPAL EVENT | DATE |
Date for the directions hearing for the High Court to consider the Capital Reduction application | 12 June 2024 |
Expected date for the hearing by the High Court to confirm the Capital Reduction | 2 July 2024 |
Expected date that the Capital Reduction becomes effective | On or around 3 July 2024 |
Enquiries:
i3 Energy plc Majid Shafiq (CEO) | c/o Camarco Tel: +44 (0) 203 757 4980 |
WH Ireland Limited (Nomad and Joint Broker) James Joyce, Darshan Patel | Tel: +44 (0) 207 220 1666 |
Tennyson Securities (Joint Broker) Peter Krens | Tel: +44 (0) 207 186 9030 |
Stifel Nicolaus Europe Limited (Joint Broker) Ashton Clanfield, Callum Stewart | Tel: +44 (0) 20 7710 7600 |
Camarco Andrew Turner, Violet Wilson, Sam Morris | Tel: +44 (0) 203 781 8338 |
Notes to Editors:
i3 Energy is an oil and gas Company with a low cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea with significant upside.
The Company is well positioned to deliver future growth through the optimisation of its existing high working interest asset base and the acquisition of long life, low decline conventional production assets.
i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong Environmental, Social and Governance ("ESG") practices. i3 is proud of its performance to date as a responsible steward of the environment, people, and capital management. The Company is committed to maintaining an ESG strategy, which has broader implications for long-term value creation, as these benefits extend beyond regulatory requirements.
i3 Energy is listed on the AIM market of the London Stock Exchange under the symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For further information on i3 Energy please visit https://i3.energy/.
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
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SOURCE: i3 Energy PLC
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