CALGARY, AB, Sept. 18, 2020 /CNW/ - PetroShale Inc.
("PetroShale" or the "Company") (TSXV: PSH) (OTCQX: PSHIF) is
pleased to announce that the terms of the outstanding preferred
shares issued by its US subsidiary, PetroShale (US), Inc.
("PetroShale US"), have been amended to provide PetroShale
additional flexibility in managing and preserving its liquidity and
cash flows.
PetroShale and the holder of the preferred shares have agreed to
remove the limitation on the number of payment in kind elections in
any twelve-month period. PetroShale US is entitled to pay its
quarterly dividend in kind in respect of a maximum of six fiscal
quarters over the term ending in January 2023. To date,
PetroShale has elected to pay two quarterly dividends in
kind. Going forward, PetroShale may elect to pay up to an
additional four quarterly dividends in kind at any point over the
balance of the term. By electing to pay any dividend in kind,
the ordinary quarterly cash dividend may be settled by way of
increasing the then current liquidation preference of the preferred
shares at a rate of 12% per annum.
An affiliate of First Reserve is the sole holder of the
preferred shares.
A copy of the terms of the preferred shares, as amended, will be
available for review on the Company's SEDAR profile at
www.sedar.com.
About PetroShale
PetroShale is an oil company engaged in the acquisition,
development and production of high-quality oil-weighted assets in
the North Dakota Bakken / Three Forks.
Neither the 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.
Note Regarding Forward-Looking Statements and Other
Advisories:
This press release contains forward-looking statements and
forward-looking information (collectively "forward-looking
information") within the meaning of applicable securities laws
relating to, among other things, the potential benefits to
PetroShale of electing to make any dividend payment in kind in the
manner described herein, including providing additional flexibility
in managing and preserving its liquidity and cash flows during the
current period of low commodity prices. PetroShale provided such
forward-looking statements in reliance on certain expectations and
assumptions that it believes are reasonable at the time, including
expectations and assumptions concerning prevailing commodity
prices, the Company's liquidity and cash flows.
Although the Company believes that the expectations and
assumptions on which such forward-looking information is based are
reasonable, undue reliance should not be placed on the
forward-looking information because the Company can give no
assurance that they will prove to be correct. Forward-looking
information addresses future events and conditions, which by their
very nature involve inherent risks and uncertainties. The Company's
actual results, performance or achievement could differ materially
from those expressed in, or implied by, the forward-looking
information and, accordingly, no assurance can be given that any of
the events anticipated by the forward-looking information will
transpire or occur, or if any of them do so, what benefits the
Company will derive therefrom. Management has included the above
summary of assumptions and risks related to forward-looking
information provided in this press release in order to provide
security holders with a more complete perspective on the Company's
future operations and such information may not be appropriate for
other purposes.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. Additional information on these and other factors
that could affect our operations or financial results are included
in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website
(www.sedar.com). These forward-looking statements are made as of
the date of this press release and the Company disclaims any intent
or obligation to update publicly any forward-looking information,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities
laws.
SOURCE PetroShale Inc.