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G2 Energy closes second tranche of financing
2023-08-04 19:41 ET - News Release
Mr. Slawek Smulewicz reports
G2 ENERGY ANNOUNCES CLOSING OF SECOND TRANCHE OF NON-BROKERED PRIVATE PLACEMENT AND SETTLES DEBT
Further to G2 Energy Corp.'s news releases dated June 14, 2023, June 23, 2023, and July 12, 2023, the company has issued 1.3 million units at a price of five cents per unit to investors for gross proceeds of $65,000 and 750,000 common shares in the capital of the company at a deemed price of five cents per share to certain creditors to settle an aggregate of $37,500 in bona fide debt of the company. Each unit consists of one common share in the capital of the company and one common share purchase warrant.
Each warrant is exercisable by the warrant holder to acquire one additional common share at a price of eight cents for a period of 24 months from the closing of the tranche 2 closing, subject to an acceleration clause whereby if the closing price of the company's common shares is greater than 12 cents for a period of 10 consecutive trading days on the Canadian Securities Exchange (subject to adjustment for subdivisions, consolidations and similar events), then the company may, in its sole discretion, elect to provide written notice (the acceleration notice) to the holder of the warrants that the warrants will expire at 5 p.m. (Vancouver time) on the date that is 60 days from the date of the acceleration notice. In such instances, all warrants that are not exercised prior to the accelerated expiry time will expire at the accelerated expiry time.
The securities issued pursuant to the tranche 2 offering are subject to a statutory hold period of four-month-plus-one-day hold that expires on Dec. 2, 2023, respectively.
In connection with the tranche 2 closing, the company paid finders' fees in the aggregate of $2,000 in cash and issued 40,000 finders' warrants. Each finder's warrant is exercisable by the warrant holder to acquire one additional common share at a price of eight cents for a period of 24 months from the closing of the tranche 2 closing and is subject to the same acceleration clause as the warrants issued.
Proceeds from the financing are intended to be used in connection with potential new acquisitions, as well as for general working capital.
The company's financing remains open at this time as it has received an extension from the Canadian Securities Exchange upon which the final closing of the financing has been extended until Oct. 9, 2023.
About G2 Energy Corp.
G2 is a junior oil and gas producer listed on the Canadian Securities Exchange. Its primary focus is to acquire and develop additional overlooked, low-risk, high-return opportunities in the oil and gas sector. G2's strategy is to obtain a portfolio of risk-managed production and development opportunities onshore, United States. In May, 2022, G2 acquired the Masten unit in the Permian basin, Texas. The Masten unit is the company's first producing asset. G2 is targeting top-tier projects with operating netbacks and infrastructure facilities which will fast-track overall oil and gas production growth.