Anavio Equity Capital Markets Master Fund Limited Announces Conversion and Disposition of Securities of Canadian Overseas Petroleum Limited

LONDON and CALGARY, AB, June 30, 2023 /CNW/ - Anavio Equity Capital Markets Master Fund Limited ("Anavio") reports that on June 29, 2023, it completed the conversion of certain senior convertible bonds of Canadian Overseas Petroleum Limited ("COPL" or the "Company") and subsequently, the disposition of the resulting common shares in the capital of COPL (the "Common Shares"). In accordance with their terms, Anavio converted 9 units of senior convertible bonds due 2027 (the "2027 Bonds") into 22,031,823 Common Shares and 9 units of senior convertible bonds due 2028 (the "2028 Bonds", and together with the 2027 Bonds, the "Bonds") into 22,031,823 Common Shares, and subsequently sold the resulting aggregate of 44,063,646 Common Shares in the public market (the "Recent Trading Activity"). Prior to the Recent Trading Activity, between March 27, 2023 and June 28, 2023, Anavio converted, in aggregate, 12 units of 2028 Bonds into 29,375,760 Common Shares and sold the resulting Common Shares in the public market. The weighted average price realized for all dispositions of Common Shares by Anavio between March 27, 2023 and June 29, 2023 was GBp 4.28 per Common Share, resulting in aggregate proceeds of c. GBP 1,059,875. Anavio's conversions of Bonds and subsequent sales of Common Shares during the period from March 27, 2023 to June 29, 2023, including the Recent Trading Activity, resulted in Anavio's aggregate ownership interest in the issued and outstanding Common Shares, calculated on a fully-diluted basis, decreasing from approximately 43.0% on March 27, 2023 to approximately 27.1% on June 29, 2023.

The disposition took place through the facilities of the London Stock Exchange. 

Immediately prior to the Recent Trading Activity, Anavio did not own or exercise control or direction over any Common Shares but held 59 units of 2027 Bonds, convertible on their terms into 144,430,820 Common Shares and 67 units of 2028 Bonds, convertible on their terms into 164,014,660 Common Shares (representing, in the aggregate, approximately 32.0% of the then issued and outstanding Common Shares) and 104,608,558 common share purchase warrants of COPL (the "Warrants", and together with the Bonds and the Common Shares, the "Securities") 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 (representing approximately 10.7% of the then issued and outstanding Common Shares), in each case, calculated on a fully-diluted basis.

Immediately following the Recent Trading Activity, Anavio held 50 units of 2027 Bonds and 58 units of 2028 Bonds, convertible on their terms, in the aggregate, into 264,381,840 Common Shares, representing approximately 27.1% of the issued and outstanding Common Shares, and 104,608,558 Warrants, representing approximately 10.7% 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 Common Shares.

The culmination of the trading activity described in this press release resulted in approximately a 16.0% reduction in Anavio's aggregate ownership interest in the issued and outstanding Common Shares, calculated on a fully-diluted basis, since Anavio last disclosed its ownership interest in COPL in compliance with early warning requirements.

Anavio disposed of the Common Shares for internal risk purposes and remains committed to working with the new board and management of the Company to deliver the most value for all stakeholders and shareholders. 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