Greenfire Resources Ltd. (NYSE:GFR, TSX:GFR) plans to raise at least C$575 million through a rights offering to help fund its proposed acquisition of Connacher Oil and Gas Limited, with majority shareholder Waterous Energy Fund backstopping the entire amount.
The Calgary-based thermal oil producer said it expects to launch the rights offering in August 2026, subject to approvals and market conditions
The offering will be made to all holders of Greenfire common shares as of a record date still to be set, and the net proceeds will be used to repay a C$575 million bridge loan facility the company will incur in connection with the Connacher acquisition. Waterous Energy Fund, which holds approximately 72% of Greenfire’s outstanding common shares, has agreed to a standby purchase arrangement under which its partnerships and affiliates will fully exercise their basic subscription privilege and buy any shares not otherwise taken up by other holders. Detailed terms, including the standby commitment, will be negotiated between Waterous Energy Fund and a special committee of independent Greenfire directors formed for the purpose.
Greenfire said the offering may be upsized before launch depending on market conditions, with any incremental net proceeds used to reduce outstanding credit facility debt. The rights offering is the equity component of the financing behind Greenfire’s roughly C$1.277 billion cash acquisition of Connacher, a private oil sands company whose Great Divide project sits next to Greenfire’s Hangingstone assets. Using the bridge facility to close and then repaying it with the rights offering lets the company complete the purchase before raising equity, while the Waterous backstop underwrites the full amount and signals the controlling holder’s participation.