Cenovus reports results of Series 1 and Series 2 First Preferred Shares conversion

Rhea-AI Summary

Cenovus Energy Inc. (TSX: CVE) announces the conversion of 274,160 Series 1 Cumulative Redeemable First Preferred Shares into Series 2 Shares, while 577,882 Series 2 Shares will convert into Series 1 Shares. This conversion will be effective on March 31, 2021. Post-conversion, Cenovus will have 10,739,654 Series 1 Shares and 1,260,346 Series 2 Shares outstanding. The Series 1 Shares are traded under the symbol CVE.PR.A and Series 2 under CVE.PR.B on the Toronto Stock Exchange.

Positive

• The conversion reflects active management of preferred shares, potentially enhancing liquidity.
• Post-conversion share structure may stabilize the preferred share market.

Negative

• The high volume of conversions may indicate investor uncertainty about the preferred shares' future performance.
• Conversion could dilute the perceived value of Series 2 Shares.

CALGARY, Alberta, March 18, 2021 (GLOBE NEWSWIRE) -- Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) announces 274,160 of its 10,435,932 Cumulative Redeemable First Preferred Shares, Series 1 (Series 1 Shares) have been tendered for conversion on March 31, 2021, on a one-for-one basis, into Cumulative Redeemable First Preferred Shares, Series 2 (Series 2 Shares) and 577,882 of its 1,564,068 Series 2 Shares have been tendered for conversion, on a one-for-one basis, into Series 1 Shares.

As of March 31, 2021 Cenovus will have 10,739,654 Series 1 Shares and 1,260,346 Series 2 Shares issued and outstanding. The Series 1 Shares are listed on the Toronto Stock Exchange under the symbol CVE.PR.A and the Series 2 Shares are listed on the Toronto Stock Exchange under the symbol CVE.PR.B.        

Cenovus Energy Inc.
Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

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FAQ

What is the significance of Cenovus Energy's share conversion on March 31, 2021?

The conversion signifies adjustments in Cenovus's preferred share structure, affecting liquidity and shareholder value.

How many Series 1 and Series 2 Shares will be outstanding after the conversion?

After conversion, there will be 10,739,654 Series 1 Shares and 1,260,346 Series 2 Shares outstanding.

What are the trading symbols for Cenovus's preferred shares?

Series 1 Shares trade under CVE.PR.A and Series 2 Shares under CVE.PR.B on the Toronto Stock Exchange.

What triggered the conversion of Cenovus Energy's preferred shares?

The conversion was triggered by shareholder elections to swap between Series 1 and Series 2 Shares.