Avila Energy arranges rights offering

Executive Summary

• Avila Energy Corp. announced a rights offering of up to 226,490,954 units at $0.375 per unit, targeting gross proceeds of approximately $849,341.08.
• Each unit consists of one common share and one warrant; the warrant allows purchase of an additional share at $0.05 for six months, then $0.10 thereafter.
• Proceeds are earmarked for creditor payments under an amended bankruptcy proposal, natural‑gas processing equipment repairs, and general corporate purposes.

Key Details

• Record Date: Close of business (Mountain Time) on Dec. 17, 2025.
• Subscription Price: $0.375 per unit – a 25% discount to the CSE trading price at announcement.
• Unit Composition: 1 common share + 1 common‑share purchase warrant.
• Warrant Exercise Prices: $0.05 per share for the first six months; $0.10 per share for the remaining 18 months of a 24‑month term.
• Maximum Units & Proceeds: Up to 226,490,954 units may be issued, yielding up to $849,341.08 in gross proceeds.
• Rights Trading: Rights and underlying warrants will not trade on the CSE; only the resulting common shares will be listed under symbol VIK.
• Expiration: Rights must be exercised by 4 p.m. Mountain Time on Jan. 14, 2026; unexercised rights become void.
• Eligibility: Offered solely to shareholders residing in eligible Canadian jurisdictions; ineligible holders may apply for special approval.
• Subscription Agent: Endeavor Trust Corp. – subscription forms and payments must be submitted by the expiry date.
• Use of Proceeds:
• Payments to creditors and other liabilities not covered by the company’s amended bankruptcy proposal.
• Inspection and repair of natural‑gas processing equipment.
• Working capital and general corporate purposes.
• Related Bankruptcy Proposal: On Nov. 14, 2025 Avila filed an amended proposal under the Canadian Bankruptcy and Insolvency Act; creditor claims will be settled via a shares‑for‑debt transaction at $0.05 per share, which will dilute existing shareholders—including rights participants.

Notable Quotes

• “The proceeds from this rights offering will provide essential liquidity to address outstanding creditor obligations and support critical equipment repairs, positioning Avila for continued operational stability.” – CEO (as quoted in the circular)