Strong demand evidently exists for the convertible debenture offering announced by NG Energy (TSXV: GASX) recently. The firm last night revealed that it will be upsizing the offering as a result of the demand.
The financing will now see the company sell up to $30.0 million senior secured convertible debenture units, with each debenture priced at $1,000. Debentures contain an interest rate of 10% per annum, and a maturity of three years from the date of issuance. Each unit comes with 1,000 warrants, which contain an exercise price of $1.08 per share and are valid for three years.
The debentures are convertible at a price of $0.90 per common share, and can be converted at any time prior to maturity.
Funds from the financing were previously indicated to be slated to be used for the completion of the Brujo-1x gas well, the drilling of the Hechicero-1x well, as well as working capital. Both of the wells are slated to be completed before the end of the year.
Insiders have also committed to put forth an estimated 10% of the financing.
NG Energy last traded at $0.92 on the TSX Venture.
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