Strathcona subscription receipts cancelled by Waterous

Executive Summary

• Waterous Energy Fund (WEF) cancelled the 21.4 million subscription receipts of Strathcona Resources Ltd. following a termination event under the receipt agreement dated June 27 2025.
• WEF receiptholders will receive approximately $661.7 M (purchase price) plus $12.84 M in accrued cash dividends and related interest/income within three business days of the cancellation.
• After cancellation, WEF retains its 170,536,718 common shares (~79.6% of Strathcona’s outstanding equity) but holds no subscription receipts; the funds may adjust their ownership position in the future.

Key Details

• Cancellation Date: October 10 2025.
• Subscription Receipts Cancelled: 21.4 million (representing all issued receipts).
• Aggregate Purchase Price Returned: $661,688,000.
• Accrued Cash Dividends Paid (May 29 2025 – termination): $12.84 million.
• Additional Payments: Interest and other income earned on the escrowed purchase price will also be paid to receiptholders.
• Ownership Post‑Cancellation:
• Common shares held: 170,536,718 (≈79.6% of Strathcona’s issued & outstanding common shares).
• Subscription receipts held: 0.
• Purpose of Original Receipts: Investment and to facilitate Strathcona’s proposed acquisition of remaining MEG Energy Corp. shares not already owned.
• Future Ownership Flexibility: WEF may buy, sell, or otherwise adjust its common‑share position in Strathcona at any time, subject to market conditions and securities laws.
• Regulatory Filing: An early‑warning report will be filed under NI 62‑103 with the relevant securities commissions and made available on SEDAR+.

Notable Quotes

(No direct quotes were provided in the release.)