Benzinga | Oct 29, 2020 06:43AM EDT

Precision Drilling Announces Share Consolidation With 20:1 Ratio



CALGARY, Alberta, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Precision Drilling Corporation ("Precision" or the "Company") (TSX:PD, NYSE:PDS) announces that it is proceeding with a 20:1 consolidation of the common shares of the Company (the "Consolidation"). Notice has been provided to the Toronto Stock Exchange ("TSX"), and the New York Stock Exchange ("NYSE") and Precision's common shares are expected to begin trading on the TSX and NYSE, on a consolidated basis, on or about November 12, 2020.

At Precision's Annual and Special Meeting of Shareholders, held on May 14, 2020, the Company's shareholders approved a special resolution authorizing the Board of Directors of the Company (the "Board") to, in its discretion, file articles of amendment to consolidate the common shares of the Company at a consolidation ratio within the range of one post-consolidation share for every five to 40 old common shares. The Board has resolved to proceed with the Consolidation on a 20:1 ratio (one post-consolidation share for every 20 old common shares).

Following the Consolidation, the number of outstanding common shares of the Company will be reduced from approximately 274.5 million outstanding common shares to approximately 13.7 million outstanding common shares. Precision's shares will continue to be listed on the TSX under the symbol "PD" and on the NYSE under the symbol "PDS". Following the Consolidation, the new CUSIP number for the Company's common shares will be 74022D407 and the new ISIN for the Company's common shares will be CA74022D4075.

No fractional shares will be issued pursuant to the Consolidation. In lieu of any such fractional shares, each registered shareholder otherwise entitled to a fractional share following the implementation of the Consolidation will receive the nearest whole number of post-consolidation shares. For example, any fractional interest representing less than 0.5 of a post-consolidation share will not entitle the holder thereof to receive a post-consolidation share and any fractional interest representing 0.5 or more of a post-consolidation share will entitle the holder thereof to receive one whole post-consolidation share. In calculating such fractional interests, all shares registered in the name of each registered shareholder will be aggregated.

The Company's transfer agent, Computershare Trust Company of Canada ("Computershare"), will act as the exchange agent for the Consolidation. On the effective date of the Consolidation, which is expected to be November 9, 2020, Computershare will send instructions (i.e., a Letter of Transmittal) to shareholders who hold share certificates. Registered shareholders who will hold at least one new post-consolidation share will be required to exchange their old share certificates for new share certificates, or alternatively, a Direct Registration System ("DRS") Advice/Statement representing the number of new post-consolidation shares they hold following the Consolidation. Until registered shareholders have returned their properly completed and duly executed letter of transmittal and surrendered their old share certificate(s) for exchange, registered shareholders will not be entitled to receive any distributions, if any, that may be declared and payable to holders of record following the Consolidation.

Beneficial shareholders who hold their shares through intermediaries (securities brokers, dealers, banks, financial institutions, etc.) and who have questions regarding how the Consolidation will be processed should contact their intermediaries.