On January 7, 2020, Cona Resources Ltd. (“Cona“) acquired Pengrowth Energy Corporation (“Pengrowth”) by way of a plan of arrangement under the Business Corporations Act (Alberta) (the “Arrangement”). Pursuant to the Arrangement, former shareholders of Pengrowth received:
- cash consideration of C$0.05 per share; and
- a right to each shareholder’s pro-rata portion of any proceeds with respect to Pengrowth’s ongoing litigation with Grand Valley Resources Corp. (the “GVR Litigation”) as a dividend in kind.
As part of the Arrangement, on closing, the GVR Litigation and any proceeds with respect to the GVR Litigation, less applicable costs, were assigned to a litigation trustee to be held in trust for the former shareholders of Pengrowth. On Dec 18, 2019, the Court of Queen’s Bench of Alberta issued a decision in favour of Pengrowth. The counterparty to the GVR Litigation has appealed this decision.
On Apr 2, 2020, the Litigation Trust announced the sale of all the issued and outstanding shares of the Litigation Trust, along with all rights to the GVR Litigation, to Omni Bridgeway. All former Pengrowth shareholders will receive approximately C$0.025 per share. Click here for the news release.
For information regarding Cona’s acquisition of Pengrowth, please refer to the acquisition documents and historical news releases issued by Pengrowth, which can be found on SEDAR (the System for Electronic Document Analysis and Retrieval) here. A selection of documents regarding Cona’s acquisition of Pengrowth can also be found using the navigation above.
2020 Tax Slips
Former Pengrowth shareholders will receive tax slips for 2020 (form T5008) for the C$0.05 per share received from Strathcona by the end of February 2021. Registered shareholders should receive their tax slip from Computershare and beneficial shareholders should receive their tax slip from their broker.
All matters regarding the Litigation Trust (including any tax slips relating to the $0.025 per share distribution) are managed by the Litigation Trust. The Litigation Trust is not connected to Strathcona and as such we are unable to comment on any matters relating to the Litigation Trust.