NG Energy (TSXV: GASX) today closed its previously announced financing, raising gross proceeds of $9.8 million in the process. The company managed to sell a total of 8.5 million units within the financing, with units priced at $1.15 each.
Each unit under the offering contained one common share and one half of a common share purchase warrant. Each warrant is valid for a period of three years from the date of issuance, with an exercise price of $1.75 per share.
The company then completed a concurrent financing for additional proceeds of $0.5 million under the same terms, bringing total funds raised to $10.3 million.
Proceeds from the offering are to be used for working capital and general corporate purposes.
Notably, certain insiders of the company participated in the financing, including Frank Giustra, whom acquired 115,000 units of the company. On a partially converted basis, Giustra owns a 21.83% interest in the company following the financing. Serafino Iacono also participated in the financing, taking down 109,500 units, bringing his total ownership in the company to 12.49% of the company.
NG Energy last traded at $1.63 on the TSX Venture.
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