Vermilion Energy Inc. Acquires Common Shares of Coelacanth Energy Inc.

Rhea-AI Summary

Vermilion Energy Inc. acquires 12,497,000 common shares of Coelacanth Energy Inc. through a transaction, increasing its ownership to 20.84% of the issued and outstanding Common Shares. The purchase price was $9,372,750 at $0.75 per Common Share. Vermilion states the acquisition was for investment purposes, and it may adjust its holdings based on various factors.

Insights

Financial Analyst

The acquisition by Vermilion Energy Inc. of a significant number of Coelacanth Energy Inc. shares is a strategic move that could signal Vermilion's intention to exert more influence or possibly aim for a future takeover. By purchasing 12,497,000 common shares, Vermilion has increased its stake in Coelacanth to approximately 20.84%, crossing the threshold that necessitates an early warning report. This transaction is significant as it reflects Vermilion's commitment to invest in Coelacanth and the price of $0.75 per Common Share might indicate a favorable valuation that Vermilion leveraged.

Investors should note that the transaction's timing and size could affect Coelacanth's stock price due to increased speculation about Vermilion's intentions. This move also suggests Vermilion's positive outlook on Coelacanth's future performance and potential. The financial implications for Vermilion include the allocation of over $9 million in capital, which suggests confidence in Coelacanth's long-term value proposition.

Market Research Analyst

The acquisition of more than 2% of Coelacanth's issued and outstanding shares by Vermilion is a notable event for market observers. It highlights Vermilion's aggressive investment strategy and could influence Coelacanth's market positioning. The transaction may also prompt a response from other investors or competitors, potentially leading to market volatility or a reevaluation of Coelacanth's market value.

It is essential to consider the broader implications of such a move, including the potential for Vermilion to further increase its stake. Market conditions, economic factors and the performance of the energy sector will likely play a critical role in shaping the outcomes of this investment. Stakeholders should monitor Vermilion's future actions closely, as they may signal shifts in market dynamics or strategic industry realignments.

Legal Expert

The legal implications of Vermilion's acquisition are governed by National Instrument 62-103, which requires disclosure when a shareholder's stake exceeds certain thresholds. The early warning report serves to maintain transparency in the market and inform stakeholders of significant changes in share ownership. Compliance with these regulations is crucial for maintaining investor trust and ensuring fair market practices.

Additionally, the increase in ownership stake to over 20% could have implications under takeover bid rules, potentially leading to a mandatory offer to all shareholders if certain conditions are met. Vermilion's statement that it may increase or decrease its investment based on various factors indicates a strategic approach to its investment in Coelacanth, aligned with legal frameworks that govern such transactions.

CALGARY, AB, Feb. 28, 2024 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion") (TSX: VET) (NYSE: VET) announces that it has filed an early warning report (the "Early Warning Report") in respect of its holdings in Coelacanth Energy Inc. ("Coelacanth").

On February 27, 2024, Vermilion acquired ownership of, or control and direction over, 12,497,000 common shares ("Common Shares") of Coelacanth through a privately negotiated transaction with a single counterparty at a price of $0.75 per Common Share for a purchase price of $9,372,750 (the "Transaction"), representing an amount equal to more than 2% of the issued and outstanding Common Shares, thereby triggering the requirement to file an early warning report.

Prior to the Transaction, Vermilion had ownership of, or control and direction over, an aggregate of 97,682,604 Common Shares, representing approximately 18.55% of the issued and outstanding Common Shares (and 104,682,604 Common Shares assuming exercise of 7,000,000 Common Share purchase warrants (the "Warrants") held by it, representing approximately 19.62% of the issued and outstanding Common Shares on a partially diluted basis). Following the Transaction, Vermilion now has ownership of, or control and direction over, an aggregate of 110,179,604 Common Shares, representing approximately 20.84% of the issued and outstanding Common Shares (and 117,179,604 Common Shares, assuming exercise of the Warrants, representing approximately 21.88% of the issued and outstanding Common Shares on a partially diluted basis).

The Common Shares were acquired for investment purposes. Subject to applicable law, Vermilion will continue to review its holdings of Coelacanth's securities, and depending on market conditions, general economic conditions and industry conditions, Coelacanth's business and financial condition and prospects and/or other relevant factors, may increase or decrease its investment in the securities of Coelacanth.

This news release is being issued in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of the Early Warning Report. The Early Warning Report has been filed under Coelacanth's profile on SEDAR+ and can be viewed at www.sedarplus.ca. 

About Vermilion

Vermilion is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing assets in North America, Europe and Australia. Our business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. Vermilion's operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia.

Vermilion's priorities are health and safety, the environment, and profitability, in that order. Nothing is more important to us than the safety of the public and those who work with us, and the protection of our natural surroundings. We have been recognized by leading ESG rating agencies for our transparency on and management of key environmental, social and governance issues. In addition, we emphasize strategic community investment in each of our operating areas.

Vermilion trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.

Vermilion's address is 3500, 520 – 3^rd Avenue SW, Calgary, Alberta T2P 0R3
Coelacanth's address is 2110, 530 – 8^th Avenue SW, Calgary, Alberta, T2P 3S8

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SOURCE Vermilion Energy Inc.

FAQ

How many common shares did Vermilion Energy Inc. acquire in the transaction with Coelacanth Energy Inc.?

Vermilion Energy Inc. acquired 12,497,000 common shares of Coelacanth Energy Inc. in the transaction.

At what price per common share did Vermilion Energy Inc. purchase the shares?

Vermilion Energy Inc. purchased the common shares at a price of $0.75 per share.

What percentage of the issued and outstanding Common Shares does Vermilion Energy Inc. now own?

Vermilion Energy Inc. now owns approximately 20.84% of the issued and outstanding Common Shares of Coelacanth Energy Inc.

What was the total purchase price for the common shares acquired by Vermilion Energy Inc.?

The total purchase price for the common shares acquired by Vermilion Energy Inc. was $9,372,750.

Why did Vermilion Energy Inc. acquire the common shares of Coelacanth Energy Inc.?

Vermilion Energy Inc. acquired the common shares for investment purposes.