NG Energy Looks To Raise $45 Million For Further Development Of Sinu-9

NG Energy (TSXV: GASX) appears to be in search of additional funding. The firm last night indicated that it is looking to conduct a best efforts marketed prospectus offering for the sale of convertible debenture units.

The company is looking to raise aggregate proceeds of $45.0 million under the offering, via the sale of 45,000 convertible debenture units. Units are to bear interest at a rate of 8% per annum, with a maturity five years from the closing of the offering. Debentures are to convert at a price of $2.25 per share.

Each unit will also come with 400 common share purchase warrants, valid for a period of five years from the date of issuance with an exercise price of $2.50. They also have an acceleration clause, whereby the company can force their acceleration in the event the equity trades above $3.00 on a volume weighted basis for ten consecutive trading days.

An over-allotment option has also been issued, enabling the underwriters to sell up to 15% of additional units under the offering.

Both the debentures and warrants are expected to be listed for trading on the Neo Exchange.

Proceeds from the offering are to be used to re-enter the Tinka-1 gas exploration well, and drill two gas exploration wells at the firms Sinu-9 property. Proceeds are to also be used for seismic to be conducted at the Tiburon block, as well as for working capital purposes.

NG Energy last traded at $1.65 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.

Video Articles

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

They Laughed at $3,000 Gold, Now We’re Headed for $4,000! | Sean Roosen – Osisko Development Corp.

Recommended

Steadright Begins Preliminary Economic Assessment On TitanBeach Project

Three Miners Trapped Underground At Newmont’s Red Chris Mine

Related News

NG Energy Completes Civil Works And Lays Flow Lines For Natural Gas Pipeline

NG Energy (TSXV: GASX) is starting the year off strong by effectively completing its pipelines...

Tuesday, January 4, 2022, 08:25:32 AM

NG Energy Begins Drilling First Well At Sinu-9

NG Energy International (TSXV: GASX) has finally begun the process of developing its flagship asset,...

Tuesday, May 31, 2022, 09:52:00 AM

Natural Gas Is The Transition Fuel Of The Future – The Daily Dive feat Ronald Pantin of NG Energy

Starting off the week on the Daily Dive is that of Ronald Pantin, whom is...

Monday, January 11, 2021, 01:30:00 PM

NG Energy Releases Reserves Report For Magico-1X, Reveals Plans To Drill Two Wells In Two Months

The results are in for NG Energy (TSX: GASX) for their Magico-1x well. The firm...

Friday, September 2, 2022, 08:42:09 AM

NG Energy Tests 50.6 MMscf/d Gas In Aggregate Across Three Zones At Brujo-1X

Testing of NG Energy’s (TSXV: GASX) Brujo-1x well, which previously was indicated to have hit...

Tuesday, November 22, 2022, 08:43:54 AM