East West Petroleum Provides Corporate Update

Rhea-AI Summary

East West Petroleum (TSXV: EW) has announced significant corporate restructuring plans including a $3 million capital return to shareholders and a 10:1 share consolidation. The company currently has 90,485,665 shares outstanding, which will be reduced to 9,048,566 shares post-consolidation.

The proposed capital distribution and consolidation require both shareholder and regulatory approvals. Following these corporate actions, the company plans to maintain sufficient working capital while pursuing opportunities in natural resource exploration and development, with expectations to complete a transaction within six months to avoid Tier movement.

Positive

• Planned distribution of $3 million to shareholders through capital reduction
• Company will maintain sufficient working capital post-distribution
• Strategic 10:1 share consolidation to improve share structure
• Plans to complete new transaction within 6 months

Negative

• Capital reduction and distribution subject to shareholder and regulatory approvals
• No guarantee of required approvals or implementation of proposed plans
• Uncertainty regarding future transaction completion within targeted timeframe

Vancouver, British Columbia--(Newsfile Corp. - July 2, 2025) - East West Petroleum Corp. (TSXV: EW) ("East West" or the "Company") announces that the Board of directors has approved, subject to shareholder approval, distribution of capital to the shareholders. The distribution is intended to be structured as a return of capital to the Company's shareholders as of a record date to be determined in the near future.

The Company will call an annual and special meeting of its shareholders, to approve, among other things, a reduction in the stated capital of the Company (the "Capital Reduction"), by approximately $ 3 million, pursuant to the Business Corporations Act (British Columbia), for the purposes of distributing to the holders of common shares of the Company this $ 3 million cash (the "Distribution"). The Capital Reduction and the Distribution are subject to, among other things, the receipt of shareholder and regulatory approvals. There can be no assurances that the Capital Reduction and the Distribution will receive the required approvals, or that the Company will proceed with the Capital Reduction or the Distribution. Further details in respect of the Capital Reduction, the Distribution and general meeting matters will be announced when determined.

In addition to the distribution the Board has also approved a capital consolidation of 10 for 1. At this time the Company has 90,485,665 shares issued and outstanding and post consolidation there will be 9,048,566 shares issued and outstanding. The consolidation will only be implemented in conjunction with the return of capital.

Post Distribution and post consolidation the Company will have working capital sufficient to maintain operations for a significant period of time while it pursues opportunities in the natural resource exploration and development sector. The Company anticipates completing a transaction within six months and as such should avoid Tier movement.

Further news will be issued as the company advances this restructuring plan.

On Behalf of the Board

"Nick DeMare"

Nick DeMare,
Director & Interim CEO

1305 - 1090 West Georgia Street, Vancouver, BC, Canada, V6E 3V7
Tel: 604.685.9316 | Fax: 604.683.1585

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In particular and without limitation, this news release contains forward-looking statements relating to the proposed Capital Reduction and the Distribution; and events following the completion of the Capital Reduction and the Distribution.

Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. In respect of the forward-looking statements and information concerning the anticipated completion of the Capital Reduction and the Distribution, the Company has made certain assumptions that management believes are reasonable at this time, including assumptions that shareholders will approve the distribution. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/257386

FAQ

What is the amount of capital distribution proposed by East West Petroleum (TSXV: EW)?

East West Petroleum plans to distribute approximately $3 million to shareholders through a capital reduction, subject to shareholder and regulatory approvals.

What is the share consolidation ratio announced by East West Petroleum?

The company announced a 10:1 share consolidation, which will reduce the current 90,485,665 shares outstanding to 9,048,566 shares.

When does East West Petroleum expect to complete a new transaction?

The company anticipates completing a transaction in the natural resource exploration and development sector within six months to avoid Tier movement.

How many shares will East West Petroleum have outstanding after the consolidation?

Post-consolidation, East West Petroleum will have 9,048,566 shares issued and outstanding, reduced from the current 90,485,665 shares.

What approvals are required for East West Petroleum's capital reduction and distribution?

The capital reduction and distribution require both shareholder approval at an annual and special meeting and regulatory approvals under the Business Corporations Act (British Columbia).