Greenfire Resources Announces Closing of Rights Offering and Refinancing Initiatives

Core Viewpoint - Greenfire Resources Ltd. has successfully completed its refinancing initiatives, including a C$300 million rights offering to shareholders, which has strengthened its financial position and eliminated debt [1][3]. Group 1: Rights Offering Details - The rights offering allowed eligible shareholders to purchase additional common shares, resulting in the issuance of 55,147,055 common shares at a price of C$5.44 (US$3.85) per share, generating approximately C$298.5 million in gross proceeds [2]. - Each right entitled holders to acquire 0.7849 of a common share, with no fractional shares issued, and the offering was fully subscribed, negating the need for a standby commitment from Waterous Energy Fund [2]. Group 2: Financial Impact - The net proceeds from the rights offering, along with existing cash, were used to redeem US$237.5 million of outstanding 12% senior secured notes due in 2028, resulting in the company being debt-free [3]. - Additionally, the company closed on a $275 million revolving credit facility with Canadian banks, which remains undrawn as of the current date [3]. Group 3: Company Overview - Greenfire is an oil sands producer focused on developing long-life and low-decline thermal oil assets in Alberta's Athabasca region, with a commitment to operational excellence and safe operations [4]. - The company aims to leverage its substantial resource base and infrastructure to achieve capital-efficient production growth [4].