SURGE ENERGY CASHFLOW Machine Pays off $44.5 M.SURGE Energy BEST CASH pays off 44.5 million and higher DIVIDENDS soon CALGARY, AB, Sept. 22, 2022 /CNW/ - Surge Energy Inc. ("Surge", "SGY", or the "Company") (TSX: SGY) is pleased to announce that it is issuing a notice of redemption to holders of its currently outstanding $44,500,000 5.75% Convertible Unsecured Subordinated Debentures due December 31, 2022 (the "Debentures"). The Debentures are not subject to a pre-payment penalty. As set out in the notice of redemption, Surge will redeem, as of October 28, 2022 ("Redemption Date"), all of the aggregate principal amount of the Debentures for cash. On the Redemption Date, Surge will pay the aggregate principal amount of the Debentures (being $1,000 for each Debenture) plus all accrued and unpaid interest thereon to but excluding the Redemption Date (less any tax required to be deducted) (collectively, the "Redemption Price"). The Debentures are listed on the Toronto Stock Exchange (the "TSX") under the symbol "SGY.DB" (CUSIP 86880YAA7).
In accordance with the terms of the indenture governing the Debentures, holders of the Debentures have the right to convert their Debentures, at their option, into common shares of Surge ("Surge Shares") at a conversion price of approximately $23.23 per Surge Share at any time prior to 5:00 p.m.Calgary time on October 27, 2022. A holder electing to convert the principal amount of their Debentures will receive approximately 43 Surge Shares per $1,000 principal amount of Debentures converted plus a cash payment for accrued unpaid interest up to, but excluding, th