NG Energy Upsizes Financing To $30.0 Million Due To Demand
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.
READ: NG Energy Hits 783 Feet Of Net Gas Pay At Brujo-1x Well
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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