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Perpetual Energy Decision May Deter Issuers from Pursuing Dilutive Rights Offerings in Tandem with Convertible Debenture Share Repayments

March-7-2016

Lawyer David Conklin, Tim Heeney
Area Corporate Finance and Securities

Summary

The Alberta Securities Commission (ASC) recently released its reasons in an application between Perpetual Energy Inc. (“Perpetual”) and a group of Perpetual’s convertible debentureholders (the “Applicants”).  The decision highlights the challenges presented by convertible debentures as they approach maturity for issuers experiencing a declining share price.

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