Greenfire Announces Date for Rights Plan Hearing with the Alberta Securities Commission and Resignation of Two Directors

Rhea-AI Summary

Greenfire Resources (NYSE: GFR) (TSX: GFR) announces that the Alberta Securities Commission (ASC) has set November 5, 2024 for a hearing regarding an application by Waterous Energy Fund Management Corp. (WEF) and certain shareholders. The application seeks to cease trade Greenfire's shareholder protection rights plan agreement, which was adopted following WEF's announcement to acquire 43.3% of Greenfire's outstanding common shares.

Greenfire intends to defend its Rights Plan at the hearing to ensure fair treatment of all shareholders and allow the Board to explore value-enhancing alternatives. Additionally, Julian McIntyre and Venkat Siva, principals of selling shareholders Allard Services and Annapurna respectively, have resigned as directors of the company.

Positive

• Board's proactive approach in adopting a Rights Plan to protect shareholder interests
• Company's commitment to defend the Rights Plan at the ASC hearing

Negative

• Potential change in control with WEF seeking to acquire 43.3% of outstanding shares
• Resignation of two directors, including the Board Chair
• Legal challenge to the company's Rights Plan

Calgary, Alberta--(Newsfile Corp. - September 30, 2024) - Greenfire Resources Ltd. (NYSE: GFR) (TSX: GFR) ("Greenfire" or the "Company"), a Calgary-based energy company focused on the production and development of thermal energy resources from the Athabasca region of Alberta, Canada announces that the Alberta Securities Commission ("ASC") has set November 5, 2024 as the date for the hearing in respect of the application made by certain limited partnerships managed by Waterous Energy Fund Management Corp. (collectively, "WEF") and parties that it has entered into share purchase agreements with, namely Allard Services Limited ("Allard"), a corporation controlled by former director and Greenfire Board Chair Julian McIntyre, and Annapurna Limited ("Annapurna"), a corporation controlled by former Greenfire director Venkat Siva, and Modro Holdings LLC (together with Allard and Annapurna, the "Selling Shareholders") requesting that the ASC, among other things, cease trade the Company's shareholder protection rights plan agreement (the "Rights Plan").

Greenfire adopted the Rights Plan following the announcement on September 16, 2024 that WEF had entered into agreements with each of the Selling Shareholders to acquire 43.3% of the issued and outstanding common shares of the Company. The Company intends to defend the necessity of its Rights Plan at the ASC hearing to ensure, to the extent possible, that all shareholders of Greenfire are treated fairly and equally in connection with any unsolicited take-over bid or other attempt to acquire control of Greenfire, and to provide the Board sufficient opportunity to identify, develop and negotiate potential value-enhancing alternatives, if available, that would benefit all shareholders of the Company.

Greenfire also announces that today each of Julian McIntyre, the principal of Selling Shareholder Allard, and Venkat Siva, the principal of Selling Shareholder Annapurna, has tendered their resignation as a director of the Company.

About Greenfire

Greenfire is an intermediate, lower-cost and growth-oriented Athabasca oil sands producer with concentrated Tier-1 assets that use steam assisted gravity drainage extraction methods. The Company is operationally focused with an emphasis on an entrepreneurial environment and a high level of employee ownership. Greenfire Common Shares are listed on the New York Stock Exchange and Toronto Stock Exchange under the symbol "GFR". For more information, visit greenfireres.com or find Greenfire on LinkedIn and X.

Contact Information

Greenfire Resources Ltd.
205 5th Avenue SW
Suite 1900
Calgary, AB T2P 2V7
investors@greenfireres.com
greenfireres.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225201

FAQ

When is the Alberta Securities Commission hearing for Greenfire Resources (NYSE: GFR)?

The Alberta Securities Commission (ASC) has set November 5, 2024, as the date for the hearing regarding Greenfire Resources 's (NYSE: GFR) shareholder protection rights plan agreement.

What percentage of Greenfire Resources (NYSE: GFR) shares is Waterous Energy Fund Management Corp. attempting to acquire?

Waterous Energy Fund Management Corp. (WEF) has entered into agreements to acquire 43.3% of the issued and outstanding common shares of Greenfire Resources (NYSE: GFR).

Which directors have resigned from Greenfire Resources (NYSE: GFR) board?

Julian McIntyre, the principal of Allard Services and former Board Chair, and Venkat Siva, the principal of Annapurna , have resigned as directors of Greenfire Resources (NYSE: GFR).

Why did Greenfire Resources (NYSE: GFR) adopt a shareholder protection rights plan?

Greenfire Resources (NYSE: GFR) adopted the Rights Plan to ensure fair treatment of all shareholders in connection with any unsolicited take-over bid and to provide the Board opportunity to explore value-enhancing alternatives.