Ensign Energy Services Inc. announced that it has received CAD 25 million in funding
December 30, 2024
Share
Ensign Energy Services Inc. announced a non-brokered private placement to issue 7.5% Unsecured Subordinated Convertible Debentures due January 31, 2029 for the gross proceeds of CAD 25,000,000 on December 31, 2024. The Debentures bear interest from the date of closing at 7.50% per annum, payable semi-annually in arrears, on April 1 and October 1 of each year, with the first payment of interest due on April 1, 2025. The Debentures will mature on January 31, 2029. The Debentures are convertible at the option of the holder into common shares of the Corporation at any time prior to the close of business on the Maturity Date upon at least 14 days prior notice, at a conversion price of CAD 3.50 per Common Share, subject to customary anti-dilution adjustments. If all Debentures are converted, 7,142,857 Common Shares of the Corporation would be issued or 3.72% of all issued and outstanding Common Shares. Holders converting their Debentures will receive accrued and unpaid interest thereon (if any), up to, but excluding, the date of conversion.
On January 3, 2025 the company announced that the transaction includes participation from individual investor, N. Murray Edwards who acquired he Debentures in an amount equal to CAD 18,650,000. The Debentures are convertible into 5,328,571 Common Shares. Prior to the acquisition of Debentures, the Acquiror owned or controlled 43,060,656 (23.3%) of the outstanding Common Shares and 600,000 options to acquire 600,000 Common Shares on a non-diluted basis.
Ensign Energy Services Inc. is a technologically advanced oilfield service provider. It provides oilfield services to the oil and natural gas industry in Canada, the United States and internationally. Its services include drilling, directional drilling, well servicing and rental equipment. Its well services include well completion and re-completions, well abandonment, production workovers, downhole pump servicing and/or replacement, well sidetracking and deepening, fishing and swabbing operations, and corod injection. It offers a comprehensive range of resolutions, customized to meet the needs of its customers, including advanced drilling systems, automation technologies, directional drilling tools, and environmental innovations. Its ASR 150 is a fully automated service rig that eliminates all manual manipulation of tubulars from the pipe rack to the make-up of a connection, reducing the number of personnel on the rig floor. It offers pressure testing, tool rentals or torque wrenches.