CALGARY, Oct. 1, 2019 /PRNewswire/ - OBSIDIAN ENERGY
LTD. (TSX – OBE, NYSE – OBE.BC) ("Obsidian Energy", the
"Company", "we", "us" or "our")
received notification on October 1,
2019, from the New York Stock Exchange (the "NYSE")
that the Company is no longer in compliance with one of the NYSE's
continued listing standards because the average closing price of
Obsidian Energy's common shares was less than US$1.00 per share over a consecutive 30 trading
day period. As of September 27, 2019,
the average closing price of Obsidian Energy's common shares over
the preceding consecutive 30 trading day period was US$0.99 per share. The issuance of the
notification is not discretionary and is sent automatically when a
listed company's share price falls below the NYSE's minimum price
listing standard.
Under the NYSE's rules, Obsidian Energy can avoid delisting if,
within six months from the date of the NYSE notification, its
common shares have a closing price on the last trading day of any
calendar month and a concurrent 30 trading day average closing
price of at least US$1.00 per share.
If at the expiration of the applicable cure period Obsidian Energy
has not regained compliance, the NYSE will commence suspension and
delisting procedures.
As announced on September 10,
2019, the Board of Directors has initiated a formal process
to explore strategic alternatives intended to evaluate the
Company's strategic options and alternatives to maximize
shareholder value. Obsidian Energy believes that this process is in
the best interest of shareholders and may result in an increase of
the share price over time and thereby bringing Obsidian Energy into
compliance with the Minimum Share Price Listing Standard.
Obsidian Energy will continue trading on
the NYSE until the end of the compliance cure period,
which is expected to be approximately April
1, 2020. If at that time, the Company regains compliance
through an increase in its share price, then Company's shares will
remain listed on the NYSE. If the Company's share price does
not increase sufficiently to meet the continued standards
requirements, the Company will not take further steps to regain
compliance and expects the NYSE will commence with
de-listing procedures
Non-compliance with the NYSE's price listing standard does not
affect Obsidian Energy's business operations or its reporting
requirements to the U.S. Securities and Exchange Commission (the
"SEC"), nor does it affect the continued listing and trading
of Obsidian Energy's common shares on the Toronto Stock Exchange
(the "TSX"). Obsidian Energy intends to notify the NYSE
within 10 business days from the date of the notification that it
intends to cure this price deficiency and return to compliance with
the NYSE's price listing standard prior to the expiration of the
applicable cure period.
Obsidian Energy's common shares will continue to be listed and
traded on the NYSE during the applicable cure period, subject to
compliance with the NYSE's other continued listing standards, under
the symbol "OBE", but the NYSE will assign a ".BC" indicator to the
symbol to denote that Obsidian Energy is below the NYSE's price
listing standard. This indicator will be removed at such time as
Obsidian Energy is deemed compliant with the NYSE's price listing
standard.
Forward-Looking Statements
Certain statements contained in this document constitute
forward-looking statements or information (collectively
"forward-looking statements"). Forward-looking statements are
typically identified by words such as "anticipate", "continue",
"estimate", "expect", "forecast", "budget", "may", "will",
"project", "could", "plan", "intend", "should", "believe",
"outlook", "objective", "aim", "potential", "target" and similar
words suggesting future events or future performance. In
particular, this document contains forward-looking statements
pertaining to, without limitation, has initiated a formal process
to explore strategic alternatives intended to evaluate the
Company's strategic options and alternatives to maximize
shareholder value; Obsidian Energy believes that this process is in
the best interest of shareholders and may result in an increase of
the share price over time and thereby bring Obsidian Energy into
compliance with the Minimum Share Price Listing Standard; that
non-compliance with the NYSE's price listing standard does not
affect Obsidian Energy's business operations or its reporting
requirements to the SEC; Obsidian Energy's ability to regain
compliance with the NYSE's price listing standard within the
applicable cure period; that if at the expiration of the applicable
cure period Obsidian Energy has not regained compliance, the NYSE
will commence suspension and delisting procedures; Obsidian
Energy's intention to notify the NYSE within 10 business days that
it intends to cure this price deficiency and return to compliance
with the NYSE's price listing standard prior to the expiration of
the applicable cure period; and the continued listing and trading
of Obsidian Energy's common shares on the TSX and trading on the
NYSE until the end of the compliance cure period, at a minimum; if
the Company's share price does regained pricing compliance by the
end of the period, that it will not take further steps to regain
compliance and expects the NYSE will commence with
de-listing procedures.
With respect to forward-looking statements contained in this
document, we have made assumptions regarding, among other things,
our ability to initiate a formal process to explore strategic
alternatives to potentially find a transaction on acceptable terms.
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will
prove to be correct. Readers are cautioned not to place undue
reliance on forward-looking statements included in this document,
as there can be no assurance that the plans, intentions or
expectations upon which the forward-looking statements are based
will occur. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties
that contribute to the possibility that the forward-looking
statements contained herein will not be correct, which may cause
our actual performance and financial results in future periods to
differ materially from any estimates or projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, among other
things: the possibility that we are unable to identify an
acceptable strategic alternative process and/or that we are unable
to enter into an agreement in connection with that process on
acceptable terms or at all and/or that we are unable to satisfy the
conditions precedent set out in any such agreement and are
therefore unable to close thereunder, and the other factors
described under "Risk Factors" in our Annual Information Form and
described in our public filings, available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are
cautioned that this list of risk factors should not be construed as
exhaustive. The forward-looking statements contained in this
document speak only as of the date of this document. Except as
expressly required by applicable securities laws, we do not
undertake any obligation to publicly update any forward-looking
statements. The forward-looking statements contained in this
document are expressly qualified by this cautionary statement. The
forward-looking statements contained in this document speak only as
of the date of this document. Except as expressly required by
applicable securities laws, we do not undertake any obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
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SOURCE Obsidian Energy Ltd.
