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Lycos Energy Inc. Announces the Completion of Previously Announced $60.0 Million Asset Sale
Calgary, Alberta--(Newsfile Corp. - October 15, 2025) - Lycos Energy Inc. (TSXV: LCX) (...
About this update from Lycos Energy Inc
[{"type":"text","content":"Lycos Energy Inc. Announces the Completion of Previously Announced $60.0 Million Asset SaleCalgary, Alberta--(Newsfile Corp. - October 15, 2025) - Lycos Energy Inc. (TSXV: LCX) (\"Lycos\" or the \"Company\") is pleased to announce that it has successfully closed the previously announced sale of certain assets (the \"Asset Sale\") in the Lindbergh, Moose Lake and Fishing Lake areas of Alberta (the \"Assets\") to an arm's length purchaser for cash consideration of $60.0 million, subject to customary closing adjustments as provided for in the purchase and sale agreement dated October 7, 2025.The Company intends to direct approximately $9.0 million of the net proceeds of the Asset Sale towards debt repayment to strengthen the Company's balance sheet. The Company's lender has confirmed that the current $50.0 million credit facility will remain in place on the same terms following closing of the Asset Sale. In addition, the Company intends to return a total of approximately $47.9 million of the net proceeds of the Asset Sale to shareholders of Lycos (the \"Lycos Shareholders\") as a return of capital. Lycos Shareholders will receive a cash distribution of $0.90 per Common Share (the \"Cash Distribution\"). Any remaining proceeds from the Asset Sale will be used towards general corporate purposes, including funding ongoing operations and/or working capital requirements.At the upcoming special meeting of Lycos Shareholders to be held on November 13, 2025 (the \"Meeting\"), Lycos Shareholders will be asked to consider a special resolution authorizing the Company to reduce the stated capital account maintained in respect of the Company's Common Shares by $47.9 million. The Cash Distribution, for Canadian income tax purposes, will be treated as a return of capital by way of a reduction in the stated capital of the Common Shares if the special resolution is approved at the Meeting. If such approval is not obtained, the Cash Distribution will be paid as a special dividend, which, for Canadian income tax purposes, may be designated as an eligible dividend. For more details in respect of the Meeting, please refer to the Company's management information circular dated October 8, 2025, a copy of which is available on the Company's SEDAR+ profile at www.sedarplus.ca. The Company is currently reviewing its development plans for the remai...