Greenfire Resources Ltd. completed a C$300 million rights offering that expired on December 16 2025 and was announced on December 17 2025. The offering was oversubscribed, with 53,567,940 shares subscribed under the basic privilege and 23,794,471 shares under the additional privilege, leaving 1,579,118 shares to be allocated pro‑rata to additional subscribers. The company will issue 55,147,058 common shares in total, a number that reflects the maximum available under the rights plan.
The net proceeds, after offering expenses, will be combined with existing cash to redeem the company’s US$237.5 million aggregate principal amount of 12.00 % senior secured notes due 2028. This repayment will reduce long‑term leverage, lower interest expense, and strengthen the balance sheet. The equity issuance also provides liquidity for future capital needs, positioning Greenfire to fund ongoing production and growth initiatives without relying on external debt markets.
Greenfire’s debt‑repayment strategy has been a recurring theme. The company previously redeemed US$61 million of the same notes in July 2024, and the current redemption continues that trend. Waterous Energy Fund, a major shareholder, has backed the rights offering, which helped drive the oversubscription and signals confidence in the company’s financial plan. Market reaction in November 2025 was positive, with the stock surging after the announcement of the rights offering and WEF’s support, although a recent decline in the stock price highlighted investor concerns that the capital raise aims to address.
Operationally, Greenfire’s Q3 2025 production averaged 15,757 bbls/d, slightly below the 19,125 bbls/d reported in Q3 2024 but in line with the company’s 2025 guidance of 15,000–16,000 bbls/d. Management emphasized that the debt repayment is a priority to improve capital efficiency and reduce financial risk. The company also secured a C$275 million revolving credit facility, further enhancing liquidity and providing a buffer for capital expenditures.
The rights offering and debt redemption improve Greenfire’s credit profile, potentially lowering its cost of capital and enhancing its competitive position in the oil sands sector. By reducing leverage, the company can pursue strategic investments with less financial strain, while the fresh equity base supports future production expansion and operational resilience. The move signals management’s confidence in the company’s long‑term growth prospects and its commitment to maintaining a strong balance sheet.
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