CALGARY, AB, Sept. 29, 2021 /CNW/ - Spartan Delta Corp.
("Spartan" or the "Company") (TSX: SDE) announces
that the $50.0 million unsecured
non-interest-bearing convertible promissory note of the Company
(the "Spartan Note") issued on March
18, 2021 in connection with the acquisition of Inception
Exploration Ltd. was converted today into 5,882,353 common shares
in the capital of the Company (the "Common Shares") at a
conversion price of $8.50 per Common
Share and the Spartan Note was cancelled.
Pursuant to an amending agreement entered into between Spartan
and the holder of the Spartan Note, the parties agreed to the early
conversion of the Spartan Note at a conversion price of
$8.50 per Common Share.
Prior to the amendment, the Spartan Note was convertible on or
after March 18, 2023 for such number
of Common Shares calculated based on the greater of: (i) the volume
weighted average trading price of the Common Shares for the 10
trading days immediately preceding the delivery by Spartan of a
notice of conversion to the holder of the Spartan Note; and (ii)
$7.67 per Common Share.
ABOUT SPARTAN DELTA CORP.
Spartan is building a sustainable energy company whose
ESG-focused culture is centered on generating sustainable Free
Funds Flow through responsible oil and gas exploration and
development. The Company has established a portfolio of
high-quality production and development opportunities in the Deep
Basin and Montney. Spartan is
focused on the execution of the Company's organic drilling program,
delivering operational synergies in a respectful and responsible
manner to the environment and communities it operates in. The
Company is well positioned to continue pursuing immediate
production optimization, responsible future growth with organic
drilling, opportunistic acquisitions and the delivery of Free Funds
Flow. Further detail is available in Spartan's corporate
presentation, which can be accessed on its website at
www.spartandeltacorp.com.
Spartan Delta Corp.
500, 207 – 9th Avenue SW
Calgary, Alberta T2P 1K3
Canada
www.spartandeltacorp.com
Non-GAAP Measures
This press release contains certain financial measures, as
described below, which do not have standardized meanings prescribed
by International Financial Reporting Standards ("IFRS") or
Generally Accepted Accounting Principles ("GAAP"). As these
non-GAAP financial measures are commonly used in the oil and gas
industry, Spartan believes that their inclusion is useful to
investors. The reader is cautioned that these amounts may not be
directly comparable to measures for other companies where similar
terminology is used. The non-GAAP measures used in this release,
represented by the capitalized and defined terms outlined below,
are used by Spartan as key measures of financial performance and
are not intended to represent operating profits nor should they be
viewed as an alternative to cash provided by operating activities,
net income or other measures of financial performance calculated in
accordance with IFRS.
Adjusted Funds Flow and Free Funds Flow
"Adjusted Funds Flow" is calculated as Fund From
Operations, adjusted to add back transaction costs on acquisitions
and to deduct cash lease payments. Spartan believes Adjusted Funds
Flow is an appropriate metric to compare relative to Net Debt
(Surplus) because it reflects the net cash flow generated from
routine business operations and because Spartan does not include
lease liabilities in its definition of Net Debt (Surplus).
"Free Funds Flow" is calculated as Adjusted Funds Flow
less total net capital expenditures, excluding acquisitions.
SOURCE Spartan Delta Corp.