Unless indicated otherwise, all dividends paid by Paramount Resources Ltd. are designated as “eligible” dividends for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
Paramount’s Board of Directors has declared a special cash distribution of $15.00 per common share (the “Special Distribution”). The Special Distribution will be comprised of a return of capital to shareholders in the amount of $12.00 per common share and a special dividend in the amount of $3.00 per common share that will be designated as an “eligible dividend” for Canadian income tax purposes. The Special Distribution will be payable on February 14, 2025 to shareholders of record on February 10, 2025.
The Toronto Stock Exchange has advised Paramount that it will implement “due bill” trading with respect to the Special Distribution. Due bills notionally represent an entitlement that will be due to a shareholder from an issuer in connection with the completion of a material corporate event. In the case of the Special Distribution, each due bill will represent the right to receive the $15.00 per common share cash payment comprising the Special Distribution.
A due bill will be deemed to attach to each common share traded in the time period between the opening of trading on the record date for the Special Distribution and the end of trading on the payment date for the Special Distribution (the “Due Bill Trading Period”). During the Due Bill Trading Period, any seller of common shares will also be deemed to sell and assign the right to the Special Distribution to the purchaser of the common shares. As a result, the common shares will maintain their full value through to the end of trading on the payment date of the Special Distribution. The common shares will not commence trading on an ex-distribution basis (i.e., without the entitlement to receive the Special Distribution) until the first trading day following the payment date of the Special Distribution. The due bills will be redeemed on the ex-distribution date and payment will be made to the holders of the due bills thereafter.
The payment of future dividends is subject to change depending upon, among other things, the Company’s free cash flow, operating results, capital requirements and financial position.
