East West Petroleum Provides Update on Special Distribution

Rhea-AI Summary

East West Petroleum (TSXV: EW) has announced details regarding its previously disclosed special distribution and capital reduction plan. The company will distribute $2,714,570 to shareholders, amounting to $0.03 per common share.

The distribution process includes re-designating current shares as Class A Common Shares, exchanging them for New Common Shares plus cash, and reducing the stated capital. The record date is set for September 15, 2025, with payment expected around September 19, 2025. Due to the distribution's size (over 25% of market value), TSX Venture Exchange will implement "Due Bill" trading procedures until September 22, 2025.

Positive

• None.

Negative

• Distribution represents over 25% of company's market value, indicating significant capital reduction

Vancouver, British Columbia--(Newsfile Corp. - September 11, 2025) - East West Petroleum Corp. (TSXV: EW) ("East West" or the "Company") is pleased to provide an update with respect to its previously announced return of capital by way of an approximate $2,714,570 reduction in stated capital of the Company (the "Capital Reduction") and related distribution to the holders of common shares of the Company of a portion of the Company's cash in the amount of $0.03 per common share (the "Special Distribution").

Further to its news release of September 5, 2025, and in accordance with the special resolution passed by the shareholders, the Special Distribution will be paid by the Company's paying agent, Computershare Investor Services Inc. (the "Paying Agent"). Each registered shareholder of record on September 15, 2025 (the "Record Date"), will receive a cheque from the Paying Agent representing their pro rata share of the Special Distribution on or about September 19, 2025 (the "Payment Date"). Beneficial shareholders can expect to receive payment from their intermediaries, each of whom has its own payment process.

The Capital Reduction and Special Distribution will be effected by the following series of transactions: (i) the common shares in the capital of the Company will be re-designated as Class A Common Shares ("Class A Common Shares") and a new class of an unlimited number of common shares of the Company designated as "Common Shares" (the "New Common Shares") will be created; (ii) each issued and outstanding Class A Common Share will be exchanged for one New Common Share and a pro rata share of the Distribution up to $0.03 in cash per Class A Common Share; (iii) a corresponding reduction will be made in the stated capital account maintained by the Company in respect of the Class A Common Shares in an aggregate amount of approximately $2,714,570; and (iv) the Class A Common Shares will be eliminated as a class. The foregoing deemed steps will be effected without any further action or formality being required on the part of shareholders.

Given that the Distribution represents more than 25% of the market value of the Company, the TSX Venture Exchange has determined that "Due Bill" trading procedures will apply to the Special Distribution. Pursuant to such "Due Bill" trading procedures, trades of common shares of the Company entered into from the opening of trading on the Record Date until and including the close of trading on the Payment Date, will have a Due Bill attached which will allow the purchaser to receive the distribution instead of the seller. The Due Bills will be redeemed on September 22, 2025 (the "Ex-distribution Date"), once all trades with attached Due Bills entered into up to the close of trading on the Payment Date have settled. As of the Ex-distribution Date, purchases of common shares will no longer have the attaching entitlement to the Special Distribution payment.

Further details in respect of the Capital Reduction and Special Distribution are available in the management information circular of the Company in respect of the special meeting of shareholders held on September 5, 2025, a copy of which is available free of charge under the Company's profile at the Canadian Securities Administrators' website at www.sedarplus.ca.

Behalf of the Board

"Nick DeMare"

Nick DeMare,
Director & Interim CEO

1305 - 1090 West Georgia Street, Vancouver, BC, Canada, V6E 3V7
Tel: 604.685.9316 | Fax: 604.683.1585

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.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In particular and without limitation, this news release contains forward-looking statements relating to the proposed Capital Reduction and the Distribution and the anticipated timing of the completion of the Capital Reduction and the Distribution.

Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In respect of the forward-looking statements and information concerning the anticipated completion and timing of the Capital Reduction and the Distribution, the Company has made certain assumptions that management believes are reasonable at this time. These dates may change for a number of reasons, including unforeseen delays or the need for additional time to satisfy the other conditions to the completion of the Capital Reduction and the Distribution. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/265969

FAQ

What is the amount of East West Petroleum's (TSXV: EW) special distribution per share?

East West Petroleum will distribute $0.03 per common share to shareholders of record as of September 15, 2025.

When will East West Petroleum (TSXV: EW) pay the special distribution?

The special distribution payment is scheduled for September 19, 2025 to shareholders of record as of September 15, 2025.

How much is the total capital reduction for East West Petroleum?

The total capital reduction amounts to approximately $2,714,570.

What are the Due Bill trading procedures for East West Petroleum's distribution?

Due Bill trading will be in effect from September 15, 2025 until September 22, 2025, ensuring purchasers during this period receive the distribution instead of sellers.

How will East West Petroleum implement the share restructuring for the distribution?

The company will re-designate current shares as Class A Common Shares, exchange them for New Common Shares plus cash distribution, and then eliminate the Class A Common Share class.