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Highlights

  • Southern Energy Corp. receives approval for amendments to its convertible debenture indenture.
  • The approval follows an equity fundraising via placing and public offering of new units.
  • The Debenture holders' resolution allows for conversion of outstanding debentures into new Units.

Southern Energy Corp. (TSXV:SOU)(AIM:SOUC) has announced that it has received an extraordinary resolution from the holders of its outstanding convertible unsecured subordinated debentures (the "Debentures"). The resolution approves certain amendments to the debenture indenture, which was initially entered into with Computershare Trust Company of Canada (the "Trustee") on June 14, 2019, and amended by supplemental indentures in 2021 and 2024.

The approved amendments will allow, subject to the completion of a previously announced equity fundraising, that the Debentures, which currently have a face value of C$1,000 each, will convert into Units at the revised Prospectus Price. This will be equal to 102.5% of the principal amount outstanding under the Debentures, plus all accrued and unpaid interest as of the closing date. Furthermore, the newly converted Units will be subject to customary lock-up provisions.

As of now, there are 4,286 outstanding Debentures. The company intends to enter into a third supplemental indenture with the Trustee to effect the amendments. This action follows a concurrent placing of new units to institutional investors on AIM and a public offering in Canada, collectively known as the fundraising. The completion of the Debenture Amendment remains subject to the acceptance of the TSX Venture Exchange.

In addition, the company revised the expected timeline for the fundraising, although the terms of the offering remain unchanged.