Anavio Equity Capital Markets Master Fund Limited Announces Acquisition of Additional Securities of Canadian Overseas Petroleum Limited

LONDON and CALGARY, AB, March 27, 2023 /CNW/ - Anavio Equity Capital Markets Master Fund Limited ("Anavio") reports that on March 24, 2023, it completed the purchase of additional senior convertible bonds of Canadian Overseas Petroleum Limited ("COPL") having an aggregate principal amount of US$8,000,000, including US$4,000,000 in the aggregate principal amount of senior convertible bonds due 2027 (the "New 2027 Bonds") and US$4,000,000 in the aggregate principal amount of senior convertible bonds due 2028 (the "New 2028 Bonds" and, together with the New 2027 Bonds, the "New Bonds"), which are convertible on their terms, in the aggregate, into 97,919,200 common shares in the capital of COPL ("Common Shares"). Pursuant to the transaction, the New 2027 Bonds will be consolidated with COPL's outstanding senior convertible bonds due 2024 (the "Original 2027 Bonds", and together with the New 2027 Bonds, the "2027 Bonds") and the New 2028 Bonds will be consolidated with the Issuer's outstanding senior convertible bonds due 2025 (the "Original 2028 Bonds", and together with the New 2028 Bonds, the "2028 Bonds"), in each case, into a single series deemed to have been in issue as of July 26, 2022. Concurrently, Anavio acquired beneficial ownership of 49,449,196 common share purchase warrants expiring on August 26, 2027, each of which is exercisable prior to the expiry date to subscribe for one Common Share for a subscription price of GBP 0.0675 (the "New Warrants", together with the New Bonds, the "Securities").  

The Securities were purchased directly from COPL and not through the facilities of any stock exchange or other marketplace.

Immediately prior to the acquisition, Anavio did not own or exercise control or direction over any Common Shares. Immediately prior to the acquisition of the New Bonds and New Warrants, Anavio held 39 units of Original 2027 Bonds, convertible on their terms into 95,471,220 Shares (representing approximately 15.0% of the then issued and outstanding Shares), 59 units of Original 2028 Bonds, convertible on their terms into 144,430,820 Shares (representing approximately 22.6% of the then issued and outstanding Common Shares), and 55,159,362 common share purchase warrants of COPL (representing approximately 8.6% of the then issued and outstanding Common Shares), in each case, calculated on a fully-diluted basis.

Immediately following the acquisition of the New Bonds and New Warrants, Anavio held 59 units of 2027 Bonds, convertible on their terms into 144,430,820 Shares and 79 units of 2028 Bonds, convertible on their terms into 193,390,420 Shares, representing, in the aggregate, approximately 41.4% of the issued and outstanding Common Shares, and 104,608,558 common share purchase warrants of COPL, representing approximately 13.3% of the issued and outstanding Common Shares, in each case, calculated on a fully-diluted basis, and did not own or exercise control or direction over any Shares.

Anavio acquired the additional Securities for investment purposes. Anavio intends to review its investment in COPL on a continuing basis and may determine to buy additional securities, or sell all or some of the Securities it holds, depending upon price, market conditions and other factors it considers relevant from time to time.

COPL's head office is located at 3200, 715-5th Avenue SW, Calgary, Alberta, T2P 2X6.

Anavio's address is PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.

Anavio will file an early warning report with the securities regulators with respect to the foregoing matters pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, a copy of which will be available under COPL's profile on SEDAR at www.sedar.com.  Alternatively, to obtain a copy of the early warning report, please contact Anavio's IR Team at 0044 203 828 7991.

SOURCE Anavio Equity Capital Markets Master Fund Limited