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Stock Market & Financial Investment News

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December 16, 2013
09:24 EDTEQUHolder Montclair Energy says Equal Energy sale agreement 'deficient'
Montclair Energy expressed its concerns about the terms of the December 6 Arrangement Agreement entered into by Equal Energy and PetroFlow Energy providing for the acquisition of Equal Energy by a subsidiary of PetroFlow pursuant to a plan of arrangement at a price of $5.43 per common share. Collectively, the principals of Montclair hold approximately 5% of Equal Energy's common shares. Montclair and its principals view the PetroFlow transaction as "wholly inadequate on numerous grounds, including value, the uncertainty of financing and process. Montclair agrees with the analysis of Lawndale Capital Management in its December 10, 2013 press release which noted, with improved operational efficiency, the Company could afford increased borrowings to fund a sizable stock buyback and generate a higher sustainable dividend, creating more value for shareholders than the $5.43 per share proposed in the PetroFlow transaction."
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April 11, 2014
12:38 EDTEQUMontclair Energy seeks leveraged recapitalization at Equal Energy
Montclair Energy announced that it has published a detailed proposal to maximize shareholder value at Equal Energy through a recapitalization of the company. Montclair's proposal includes an analysis of the superiority of Equal conducting a leveraged recapitalization rather than completing the still pending sale to Petroflow Energy. The proposal includes the following conclusions: the Petroflow deal significantly undervalues the company; a sale of the company would preclude investors from participating in the company's future potential, with a leveraged share repurchase giving investors immediate capital return and future appreciation potential. Montclair said that in total, it estimates that a levered share repurchase can deliver total share price realization of $7.01-$9.97, representing a 29%-84% premium to the Petroflow offer of $5.43 per share.

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