Liminar owns 91% of Crown Point after the $30M rights offering repaid a $29.9M loan. The company pledged Chubut crude sales collateral for up to $100M in notes.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Crown Point Energy closed a $30 million rights offering on July 16. The company issued 240 million common shares at $0.125 each and used the proceeds to repay a $29.9 million loan owed to Liminar Energia S.A.
Liminar subscribed for 238,289,708 of the new shares. Crown Point now has 312,903,038 common shares outstanding, and Liminar holds about 91%. The repayment included $0.1 million of accrued interest.
The Calgary oil and gas producer, listed on the TSX Venture Exchange as CWV, disclosed the transactions in a release announcing results for the three and six months ended June 30. The release did not include Q2 production or revenue figures.
Crown Point also reshaped parts of its debt after the quarter. It repaid $11.6 million and issued $13.2 million of discounted promissory notes. On July 30, it paid a consent fee of $0.3 million, or 1% of the principal on its Series IX Notes Payable. The fee secured noteholder approval for a new use of collateral.
The collateral is the pledge over crude oil sales collections from the Chubut Concessions. With noteholder consent, Crown Point can use the excess collateral to secure future issuances of notes payable up to $100 million in aggregate principal.
The rights offering cleared the intercompany loan. The release carried no update on drilling or capital spending. Liminar, which provided the loan, now owns 91% of the company.
Crown Point's forward-looking statement lists Argentina's peso and inflation among the risks to its operations, along with the stability of the country's legal framework. The statement also cites the possibility of a U.S.-led trade war hitting oil and gas demand and raising financing costs. Crown Point said it does not expect to pay dividends for the foreseeable future.
The Q2 financial statements and MD&A will be filed on SEDAR+ and posted to the company's website. No filing date was given.
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