Southern Energy Corp. Announces Amendments to Outstanding Convertible Debentures

Southern Energy Corp. (TSXV:SOU, AIM:SOUC, OTCQX:SOUTF) has received approval from its debenture holders to amend the terms of its convertible unsecured subordinated debentures. The company will extend the maturity date of the debentures by one year to June 30, 2025, and increase the annual interest rate from 8.00% to 10.00%, effective June 30, 2024.

To implement these changes, Southern Energy will enter into a second supplemental indenture with Computershare Trust Company of Canada by June 30, 2024. The company currently has 4,286 debentures outstanding at a face value of C$1,000 each. As part of the agreement, Southern Energy will issue 1,863,478 common share purchase warrants to the debenture holders, allowing them to purchase common shares at C$0.25 each for 12 months post-issuance.

The amendments and warrant issuance are subject to final acceptance by the TSX Venture Exchange. The second supplemental indenture will be available on SEDAR+.