On September 19, 2024, a Calgary-based energy company, Greenfire Resources Ltd., publicly acknowledged an announcement made by Waterous Energy Fund Management Corp. (WEF Manager) on September 16, 2024. The announcement detailed that WEF Manager, in its role as the manager of certain limited partnerships under WEF, had entered into agreements with specific Greenfire shareholders to acquire 43.3% of the company’s Common Shares in a Proposed Acquisition. These Selling Shareholders include Allard Services Limited and Annapurna Limited, controlled by directors of Greenfire.
In response, the Board of Directors of Greenfire is actively reviewing the details of the Proposed Acquisition, aligning with its fiduciary duties to assess the Company’s options. This evaluation process is supported by financial and legal advisors.
Prior to these recent developments, Greenfire had engaged TD Securities in July 2024 to evaluate its strategic alternatives, with a focus on enhancing shareholder value. As part of this initiative, Greenfire decided to update its reserve report to reflect current development plans and economic growth opportunities at its operations, utilizing the latest SAGD technologies.
Greenfire recognizes WEF as a value investor with a history of acquiring negative control in publicly held oil companies, followed by full privatizations. The Board believes WEF’s Proposed Acquisition does not reflect the intrinsic value of Greenfire’s Common Shares.
Given the involvement of Greenfire’s directors in the Proposed Acquisition, an Interim Chairman and Special Committee of independent directors have been appointed to oversee the ongoing strategic process. Additionally, a limited-purpose shareholder rights plan has been adopted to protect shareholder interests and ensure fair treatment.
The Rights Plan will only be triggered if an Acquiring Person announces an intention to acquire 20% or more of the Common Shares without complying with the prescribed bid provisions. The intention of the Rights Plan is to facilitate the identification and negotiation of value-enhancing alternatives for Greenfire shareholders, in line with Canadian public company standards.
Shareholders are encouraged to carefully consider all risks and uncertainties associated with the strategic process and Proposed Acquisition, as detailed in regulatory filings available on SEDAR+ and EDGAR platforms. Greenfire does not intend to update forward-looking statements unless required by law.
For more information about Greenfire Resources Ltd., please visit the Company’s official website. The original press release can be accessed through the provided source link.
