NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN UNITED STATES CALGARY, Alberta, July 25, 2024 (GLOBE NEWSWIRE) -- Pieridae Energy Limited ("Pieridae" or the "Company") (TSX:PEA) is pleased to announce it has completed the sale of its Goldboro assets (the "Goldboro Sale") and has issued notice to repay in full the Company's subordinated secured bridge loan (the "Bridge Loan"). The balance of the Bridge Loan repayment in excess of the Goldboro Sale proceeds will be funded by the Company's existing liquidity. Pieridae is also pleased to announce it has agreed to a private placement of common shares with Alberta Investment Management Corporation ("AIMCo"), an existing Pieridae shareholder (the "Private Placement"), the proceeds of which will be used to repay a portion of the Company's existing credit facilities. Also, in response to sustained low natural gas prices, Pieridae is shutting-in approximately 6,250 boe/d of production that flows to a third-party owned and operated facility in the Company's Central Alberta core area. Darcy Reding, President & CEO, commented "We are excited to conclude the sale of Goldboro, an important step in concentrating our strategy onto our upstream and midstream businesses. We are also very pleased with the ongoing support of our lenders and of AIMCo, who have each made additional commitments to enable the repayment of the highest cost loan in our capital structure. Pieridae will be stronger financially with a lower risk profile and a clearer investment proposition that benefits our shareholders." BRIDGE LOAN REPAYMENT On July 25, 2024, Pieridae issued a binding repayment notice (the "Repayment Notice") to TEC pursuant to which the Company has agreed to fully repay the 18% fixed rate, subordinated convertible Bridge Loan which matures December 13, 2024. Pursuant to the Repayment Notice, the Bridge Loan will be settled in cash on or prior to August 24, 2024 in the amount of $24.0 million, including outstanding principal and accrued interest. Extinguishing the Bridge Loan with cash reduces the Company's total debt and avoids more significant equity dilution that would otherwise occur in the event of a full conversion of the Bridge Loan to common shares. GOLDBORO SALE In November 2023, Pieridae announced its intention to sell its Goldboro assets. On July 25, 2024 Pieridae finalized the Goldboro Sale for cash consideration of $12.0 million, subject to normal closing adjustments and the release of security by Third Eye Capital Corporation ("TEC"), concurrent with repayment of the Bridge Loan. The conclusion of the Goldboro Sale is an important step in the Company's previously announced strategic pivot away from the legacy of an integrated east coast LNG project. Pieridae has now completed the shift to focus on operating and growing the Company's natural gas, NGL and sulphur production and optimizing its midstream processing facilities in the Foothills region of Alberta. PRIVATE PLACEMENT Concurrent with the closing of the sale of the Goldboro assets, Pieridae has entered into a subscription agreement with AIMCo to issue 12,800,000 common shares to AIMCo at a price of $0.35 per share, for proceeds of $4.48 million in a non-brokered private placement. Pieridae has 159,111,336 common shares outstanding prior to the Private Placement and will have 171,911,336 common shares outstanding following the Private Placement. Proceeds from the Private Placement will be used to repay a portion of the Company's existing credit facilities. The Company has received conditional approval for the ...