RE:Dividend The bible PIPE sent confirms that if this deal is successful, there will be no more dividends paid out. Outstanding debt typically has to be paid down to an acceptable level before any bank will agree to a company paying out a dividend. That will take a while.
If you like your 5% dividend while waiting for the price of natural gas to recover, vote
Against this deal.
DIVIDENDS
Immediately upon closing of the Arrangement, AmalCo is not expected to pay dividends on the AmalCo Shares. Any future determinations to pay dividends on the AmalCo Shares will be at the sole discretion of the AmalCo Board of Directors after considering a variety of factors and conditions existing from time to time, including income and cash flow generated by AmalCo, financial requirements for AmalCo's operations and the execution of its growth strategy, capital investment requirements, debt service requirements, debt covenants, the satisfaction of solvency tests imposed by the ABCA for the declaration and payment of dividends and other business considerations as the AmalCo Board of Directors considers relevant. Further, AmalCo's ability to pay dividends to AmalCo Shareholders will be subject to applicable Laws, the covenants and restrictions under the AmalCo Credit Facilities and to any prior right to dividend, interest or other distribution payments in favour of any other securityholders.