Criterium Energy, an independent upstream energy development and production company focused in Southeast Asia, has announced the termination of the previously announced marketed public offering.
After extensive deliberation and in response to current market dynamics, Criterium has decided to terminate the previously announced Offering. The Offering and the related acquisition of Mont D'Or Petroleum Limited ('MOPL') were originally announced on June 15, 2023, and updated on July 4, 2023. As a result, no securities of the Company will be issued pursuant to the Offering.
The decision not to proceed with the Offering reflects the Company's dedication to maximizing value for its shareholders while ensuring that any transaction aligns with the Company's strategic objectives. Further, the value of Criterium's existing assets is not reflected in the context of the current market, preventing any accretive equity financing and Criterium considers the current form and proposed pricing of the Offering and the Acquisition to not be in the best interest of the Company and its shareholders.
As a result of the Company's decision not to proceed with the Offering, Criterium will be unable to proceed with the Acquisition on the terms and conditions currently contemplated in the definitive agreement. The Company intends to initiate discussions with the MOPL shareholders and stakeholders to align the Acquisition terms to be accretive to Criterium's valuation in the context of the current market conditions. Should these discussions result in acceptable terms, the Company may announce revised financing terms and conditions, otherwise it will consider alternative acquisition opportunities.
'We value our founding Criterium investors and their trust in us. We are aligned with all shareholders as our management team, board, business associates and insiders have invested collectively more than $5.4MM in our inaugural founding round. We are actively engaged in continuing discussions with MOPL shareholders and stakeholders to explore various solutions to complete the Acquisition to the mutual benefit of all parties. If we are unable to reach such terms, we will strongly consider alternative acquisition opportunities,' affirmed Robin Auld, President, and Chief Executive Officer of Criterium Energy. 'Our goal is to ensure that our investors realize the best possible value from any transaction while at the same time allowing us to execute our strategic objectives on which we were founded.'
Source: Criterium Energy
