NG Energy (TSXV: GASX) today announced the closing of its previously announced prospectus offering of convertible debentures. The financing saw the firm add more than $17.0 million to company coffers.
Under the terms of the financing, which was lead by Canaccord Genuity and Beacon Securities, the firm sold debenture units at a price of $1,000 per each. Each debenture bears interest at a rate of 8% per annum, and came with 400 common share purchase warrants. The debentures contain a maturity of May 20, 2027.
Warrants under the offering contain an exercise price of $1.40 per share and are valid for a period of five years. They also include an acceleration clause, whereby the company after May 20, 2024, can force the exercise of warrants if the volume weighted average price of the equity exceeds $2.00 for a period of ten consecutive trading days.
Sponsored · Altamira Gold Corp.
Proceeds from the offering are to be used for the drilling of the Magico-1 gas exploration well at Sinu-9, the firms flagship gas property, as well as for working capital and general corporate purposes.
NG Energy last traded at $1.16 on the TSX Venture.
FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive has been compensated to provide coverage on this company. The company has been compensated to cover this story on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
