Canacol Energy Ltd. (TSX: CNE,OTC:CNNEQ) (OTCID: CNNEQ) (BVC: CNEC) (“Canacol” or the “Company”) announces that it has entered into an agreement with an ad hoc group of holders of the Company’s 5.75% senior unsecured notes due 2028 (the “DIP Credit Agreement”) for accounts receivable financing (the “DIP Financing”), consisting of a US$45 million deferred drawdown term loan (the “Term Loan Tranche”) with the opportunity to obtain additional commitments for the issuance of up to US$22 million of letters of credit to extend and/or replace certain existing letters of credit (the “LC Tranche”). The DIP Financing will bear customary DIP interest and fees, mature on June 30, 2026 (with a three-month extension option subject to conditions) and, subject to court approval, will be secured by a court-imposed super-priority levy on all assets of the Company and its operating subsidiaries, with only a court-imposed super-priority administrative charge awarded in the CCAA proceedings (as defined below).
Proceeds from the DIP Financing will be used to fund ongoing operations and restructuring costs and, with proceeds from the LC tranche, to facilitate the extension or replacement of required letters of credit, all in accordance with cash flow projections as approved by the DIP lenders and subject to the remaining terms of the DIP Credit Agreement. Initial financing of US$15 million of the Term Loan Tranche will be available subject to customary conditions precedent, including the filing of a DIP clearance order by the Court of King’s Bench of Alberta and the recognition of such order by the US Bankruptcy Court in the Company’s Chapter 15 proceedings in the United States. The availability of the remaining $30 million of the term loan tranche is subject to customary conditions precedent, including obtaining a Colombian recognition order and meeting prescribed milestones.
The DIP financing remains subject to court approval and will support a sale and investment solicitation process to be pursued by the Company and related broader restructuring efforts under the CCAA.
In connection with the negotiations regarding the DIP financing, parties proposing to provide credit support were provided with certain non-public material information about the Company and its affairs (the “MNPI”). Copies of the MNPI and summaries and/or consolidations of certain company information are now posted on the website Monitor’s website bee https://kpmg.com/ca/canacol where it is available for anyone to review. Additional investor information regarding Canacol, including with respect to the CCAA proceedings and the Chapter 15 proceedings, will be published on the Monitor’s website. Investors should monitor the Monitor’s website for material updates and other important information regarding Canacol, its business, operations and results and its insolvency proceedings.
As indicated in the Company’s press release dated November 18, 2025, in connection with its application for creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”), the Company currently operates under the protection of the CCAA, which provides certain protections from creditors while the Company restructures its affairs.
Trading in the company’s shares has been suspended since November 17, 2025 and this suspension will continue until the delisting takes effect. Once the delisting takes effect, there will no longer be a Canadian trading market for the common shares.
After delisting, shareholders retain their legal rights and equity interests in the Company. The value, if any, of the Company’s common stock will be determined after a comprehensive restructuring or sale of the Company is completed.
Shareholders must Monitor’s website for a Q&A document outlining some of the most frequently asked questions from shareholders.
While the Company’s shares remain listed in the United States on the OTCID under the ticker CNNEQ and on the Colombian Stock Exchange (BVC) under the ticker CNEC, it is expected that the OTCID will also delist the Company’s common shares, and the Colombian Financial Superintendency will review the issuer’s registration in the Colombian National Register of Securities and Issuers, which could impact their listing on the BVC.
A copy of the DIP credit agreement is available at Monitor’s website .
About Canacol
Canacol is a natural gas exploration and production company with operations focused on Colombia. The company’s shares are traded on the Toronto Stock Exchange under the symbol CNE, the OTCID in the United States of America under the symbol CNNEQ, the Bolsa de Valores de Colombia under the symbol CNEC.
The Toronto Stock Exchange assumes no responsibility for the adequacy or accuracy of this press release.
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are often identified by words such as “plan,” “expect,” “project,” “aim,” “intend,” “believe,” “anticipate,” “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur, including but not limited to statements regarding estimated production rates of the Company’s properties and intended operating programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management as of the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company cannot guarantee that actual results will be consistent with these forward-looking statements. They are created as of the date of this document and are subject to change. The Company assumes no obligation to revise or update them to reflect new circumstances, except as required by law.
Contact Information Shareholders are reminded that any questions or concerns can be directed to the Company at: For more information please contact Investor Relations: South America: +571.621.1747 IR-SA@canacolenergy.com Global: +1.403.561.1648 IR-GLOBAL@canacolenergy.com http://www.canacolenergy.com
#Canacol #Energy #Announces #Debtor #Possession #Financing #Agreement