Alvopetro Announces Completion of Share Consolidation and Split

CALGARY, AB, Sept. 7, 2021 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF), ("Alvopetro", or the "Company") announces that pursuant to a special resolution passed by shareholders on August 12, 2021, a final order from the Alberta Court of Queen's Bench and the conditional approval of the TSX Venture Exchange (the "TSXV"), we have completed our previously announced arrangement, which involved a 2,100 to 1 share consolidation followed immediately by a 1 to 700 share split (the "Share Restructuring"). Shareholders who held less than 2,100 common shares at the close of business on September 3, 2021 are entitled to receive a cash payment in exchange for their common shares equal to C$1.12 per common share (the "Cash Proceeds"). The Cash Proceeds are based on the volume weighted average trading price of the common shares on the TSXV during the 5 consecutive trading days ending on and including September 3, 2021.

The Common Shares are expected to begin trading on a post-consolidation and split basis on the TSXV and the OTCQX as of the opening of trading today, September 7, 2021, under a new CUSIP number (02255Q209) and the same trading symbol. Alvopetro's closing trading price on the TSX Venture Exchange on Friday, September 3, 2021 was C$1.15 per share which equates to C$3.45 per share post-consolidation and post-split.

Letters of transmittal were mailed to registered shareholders on July 21, 2021 providing instructions to surrender their common shares to Alvopetro's transfer agent, TSX Trust Company ("TSX Trust") for: (a) in the case of holders of 2,100 or more Common Shares as of September 3, 2021, replacement certificates or DRS advices equivalent to the number of post-consolidation and split common shares to which the holder is entitled; and (b) in the case of holders of less than 2,100 common shares as of September 3, 2021, the Cash Proceeds. Registered shareholders are requested to submit their share certificates or DRS advices, as applicable, together with their completed applicable letter of transmittal to TSX Trust. Registered shareholders holding less than 2,100 Common Shares should complete the yellow letter of transmittal. Registered shareholders holding 2,100 Common Shares or more should complete the blue letter of transmittal. Copies of the letters of transmittal are available on Alvopetro's SEDAR profile at www.sedar.com and on the Company's website at https://alvopetro.com/Shareholder-Documents. Any questions regarding the letters of transmittal can be directed to TSX Trust Company at 1-866-600-5869 (North America) or 416-342-1091 (Local/International), or [email protected].

Non-registered beneficial holders holding their common shares through a bank, broker or other intermediary should note that such banks, brokers or other nominees may have specific procedures for processing the Share Restructuring which may differ from those described above for registered shareholders. Non-registered beneficial holders who have any questions in this regard are encouraged to contact their intermediary for further information.

The exercise or conversion price of, and the number of common shares issuable under any share-based compensation plan of the Company has been proportionately adjusted.

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter - https://twitter.com/AlvopetroEnergy 
Instagram - https://www.instagram.com/alvopetro/ 
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd 
YouTube: https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w

Alvopetro Energy Ltd.'s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-Looking Statements and Cautionary Language. This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. Forward–looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements in this news release include statements with respect to the date Alvopetro expects is common shares to begin trading on a post-consolidation and split basis. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Alvopetro Energy Ltd.

Corey C. Ruttan, President, Chief Executive Officer and Director, or Alison Howard, Chief Financial Officer, Phone: [phone], Email: [email protected], www.alvopetro.com, TSX-V: ALV, OTCQX: ALVOF