Pipestone to Issue $70 Million in Preferred Equity to Riverstone and GMT Capital

Updated 1 year 1 month ago

Pipestone Energy has entered into a subscription agreement with Riverstone V EMEA, GMT Capital, and GMT Exploration for convertible preferred shares with an initial liquidation of $70 million equivalent to 70,000 shares. These shares have a conversion price of $0.85 per common share and were sold at a price of $970 per share. Investors are entitled to an annual dividend yield of 6.5% at the sole option of Pipestone.

Current shareholders must approve this financing at Pipestone's September 14th annual meeting. Peters & Co., National Bank Financial, BMO Capital Markets, and ATB Capital Markets are acting as private placement advisors to Pipestone.