i3 Energy PLC announces reduction of its share capital

Reduction of share capital – Update

EASTLEIGH, UNITED KINGDOM / ACCESSWIRE / June 20, 2024 / i3 Energy PLC (AIM: I3E) (TSX: ITE), an independent oil and gas company with assets and operations in the United Kingdom and Canada, announces the following update to its proposed capital reduction.

Proposed Capital Reduction – Next Steps and Timeline

The terms used in this press release have the same meaning as that given in the circular to shareholders of the Company dated March 25, 2024, unless otherwise defined in this press release.

At the General Meeting of April 15, 2024, the shareholders approved a resolution allowing, among other things, the capital reduction. The proposed capital reduction aims to increase retained earnings in order to create additional distributable reserves in the Company in order to facilitate the future payment of dividends (in cash or otherwise) to Shareholders, where the profits of the Company justify it, or to enable the repurchase or repurchase of shares in the Company (or other distributions to Shareholders).

The proposed capital reduction is subject to review and confirmation by the High Court of England and Wales (the “Supreme Court”) which will take due account of the protection of creditors.

On June 12, 2024, the hearing on the initial capital reduction instructions took place. It is currently anticipated that the final court hearing will take place on 2 July 2024. Subject to this confirmation of the capital reduction at the court hearing and registration by the Registrar of Companies for England and the Wales High Court order, the capital reduction is expected to take effect according to the timetable below.

The Board anticipates that the Capital Reduction will result in the creation of distributable reserves; however, this is subject to: (i) there being no materially adverse change in the financial condition or prospects of the Company; and (ii) any arrangements that the Court requires the Company to take for the protection of its creditors (although the Board does not expect that any undertaking or similar measure will be required). This will give the Company maximum flexibility to consider paying dividends and otherwise returning value to shareholders, if the Board deems it appropriate. It should be noted, however, that if the Company is required to make undertakings to the Tribunal, this could delay the Company’s ability to pay dividends and return value to Shareholders.

Following the implementation of the Capital Reduction, there will be no change in the par value of the Company’s shares or in the number of shares issued. The Capital Reduction will not result in any distribution or reimbursement of share premium by the Company and will not reduce the underlying net assets of the Company.

The story continues

The Directors reserve the right to abandon or discontinue any application for confirmation of the capital reduction to the High Court if they consider that the conditions required for obtaining confirmation are not satisfactory to the Company or if, following a significant unforeseen event, the Directors consider that continuing with the capital reduction would be inappropriate or inadvisable.

Calendar of main events

The planned schedule of the main events relating to the Capital Reduction is as follows:

Ask for information :

Notes to editors:

i3 Energy is an oil and gas company with a diverse and growing low-cost production base in Canada’s most prolific hydrocarbon region, the Western Canadian Sedimentary Basin, and appraisal assets in the North Sea presenting significant upside potential.

The Company is well positioned to generate future growth through the optimization of its existing high-working-interest asset base and the acquisition of long-life, low-decay conventional generating assets.

i3 is dedicated to responsible business practices and the environment, and places great importance on adhering to strong environmental, social and governance (“ESG”) practices. i3 is proud of its performance to date as a responsible manager of environment, people and capital management. The Company is committed to maintaining an ESG strategy, which has broader implications for long-term value creation, as these benefits go beyond regulatory requirements.

i3 Energy is listed on the AIM market of the London Stock Exchange under the symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For more information about i3 Energy, please visit https://i3.energy/.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which forms part of UK law under the European Union (Withdrawal) Act 2018, as as modified (“MAR”). Upon publication of this announcement via a regulatory information service, this privileged information is now considered to be in the public domain.

This information is provided by RNS, the information service of the London Stock Exchange. RNS is authorized by the Financial Conduct Authority to act as a leading information provider in the UK. Terms and conditions relating to the use and distribution of this information may apply. For more information, please contact [email protected] or visit www.rns.com.

SOURCE: i3 Energy API

View the original press release at accesswire.com