Granite Oil Corp. Agrees to Sale to International Petroleum Corporation For $0.95 Cash Per Share

CALGARY, Alberta, Jan. 20, 2020 (GLOBE NEWSWIRE) -- GRANITE OIL CORP. (“Granite” or the “Company”) (TSX: GXO)(OTCQX:GXOCF) is pleased to announce that it has entered into an arrangement agreement (the “Agreement”) with International Petroleum Corporation (TSX, Nasdaq Stockholm: IPCO) (“IPC”), pursuant to which IPC will acquire all of the issued and outstanding common shares of Granite (the “Shares”) for cash consideration of $0.95 per Share (the “Transaction”). The Transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the “Arrangement”). The Transaction values Granite at approximately $79.7 million, including the assumption by IPC of Granite’s net debt and transaction costs. The cash consideration offered to Granite shareholders represents a 61% premium to the closing price of the Shares on January 17, 2020 and a 77% premium over the 30-day volume weighted average trading price of the Shares on the TSX up to and including January 17, 2020.

The board of directors of Granite (the "Board") formed a committee of independent directors (the ‎‎"Special Committee") on December 4, 2019 to, among other things, review and evaluate the terms of the unsolicited proposal from ‎IPC, review and consider alternatives to the Transaction, and to negotiate the terms and conditions of the Transaction and to make a ‎recommendation to the Board in respect of the Transaction and other related matters.‎

Cormark Securities Inc. and National Bank Financial Inc. acted as co-financial advisors to Granite and have each provide its verbal opinion that, as of the date hereof and subject to review of final documentation, the consideration to be received by Granite shareholders pursuant to the Transaction is fair, from a financial point of view, to Granite shareholders (the “Fairness Opinions”)‎.

Following an extensive review and analysis of the Transaction and the consideration of other available ‎alternatives, the Fairness Opinions and the recommendations of the Special Committee, the Board, ‎after consulting with its financial and legal advisors, ‎unanimously approved the Transaction and determined to recommend to Granite shareholders to vote in favour of the Arrangement at a meeting of Granite shareholders scheduled to take place on or about March 5, 2020 (the “Meeting”).