This press release is being issued pursuant to section 5.2 of
National Instrument 62-104 -Take-Over Bids and Issuer Bids.
CALGARY, AB, June 16, 2021 /CNW/ - Paramount Resources Ltd.
("Paramount") has acquired 4,000,000 common shares ("Common
Shares") of Canadian Premium Sand Inc. ("CPS") at a price of
$0.25 per Common Share for aggregate
consideration of $1,000,000.
The acquisition was made as part of a private placement of an
aggregate of 20,799,200 Common Shares completed by CPS on
June 15, 2021 (the "Private
Placement"). The Common Shares acquired by Paramount pursuant
to the Private Placement represent 9.51% of the 42,043,660 Common
Shares issued and outstanding following the Private
Placement.
Immediately before the Private Placement, Paramount had direct
ownership and control of 2,759,394 Common Shares and $900,000 in principal amount of convertible
debentures of CPS maturing on February 26,
2024 that may be converted at the option of the holder into
Common Shares at any time prior to maturity at a conversion price
of $0.75 per Common Share (the
"Convertible Debentures"). The Common Shares held by
Paramount prior to the Private Placement represented approximately
12.99% of the 21,244,460 Common Shares then outstanding. If
Paramount had converted all of the Convertible Debentures held by
it prior to the Private Placement, it would have had direct
ownership and control of 3,959,394 Common Shares, representing
approximately 17.64% of the then outstanding Common Shares after
giving effect to such conversion.
After the Private Placement, Paramount has direct ownership and
control of 6,759,394 Common Shares and $900,000 in principal amount of Convertible
Debentures. The Common Shares held by Paramount after the Private
Placement represent approximately 16.08% of the 42,043,660
outstanding Common Shares. If Paramount were to convert all
of the Convertible Debentures held by it, it would have direct
ownership and control of 7,959,394 Common Shares, representing
approximately 18.41% of the outstanding Common Shares after giving
effect to such conversion.
The Common Shares were acquired by Paramount for investment
purposes. Depending on the evolution of CPS's business, financial
condition, the market, if any, for CPS's securities, general
economic conditions and other factors, Paramount may acquire
additional CPS securities, or sell CPS securities it owns, controls
or directs, in the open market, by private agreement or otherwise,
subject to market conditions and other relevant factors.
SOURCE Paramount Resources Ltd.