NG Energy Closes $8 Million Non-Brokered Private Placement VANCOUVER, BC, Oct. 22, 2021 /CNW/ - NG Energy International Corp. ("NGE" or the "Company") (TSXV: GASX) (OTCQX: GASXF) is pleased to announce, further to the Company's news releases dated October 7, 2021 and October 8, 2021, that it has closed its non-brokered private placement of 8,000,000 units (each, a "Unit"), at a price of C$1.00 per Unit, for gross proceeds of C$8,000,000. Each Unit consists of one common share and one share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to purchase one additional share at a price of C$1.20 for a period of twenty-four (24) months from the date of issuance, expiring on October 22, 2023 and are subject to potential accelerated expiry in the event the closing price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds C$2.00 for twenty consecutive trading days.
All securities issued in connection with the private placement are subject to a four month and one day statutory hold period expiring on February 23, 2022, in accordance with applicable securities laws and the policies of the TSX Venture Exchange. In connection with completion of the placement, the Company has paid a C$6,000 cash commission and issued an aggregate 141,600 in Units, on the same terms as those issued in the financing to eligible parties who introduced subscribers.
Proceeds from the financing will allow the Company to expedite the drilling program at SN-9 by building roads and drilling pads concurrently rather than consecutively, allowing the drilling rig to move seamlessly from location to location saving several weeks per well. It will also allow the Company to install a de-watering capilar system at Istanbul-1 which should allow the well to be completed and put into production.
In addition, NGE has engaged Native Ads Inc. to execute a comprehensive digital media marketing campaign for the Company. This programmatic digital advertising campaign will run for a 12-month period at a cost of approx. C$300,000, and is to include content creation, web development, media buying and distribution, advertising creative development, campaign reporting and optimization.
About NG Energy International Corp.
NG Energy International Corp. is a publicly traded E&P company on a mission to provide a clean and sustainable solution to Colombia's energy needs. The Company intends on executing this mission by producing and bringing gas to the premium priced Colombian gas market from its concessions, SN-9, a 311,353 acres block which is adjacent to Canacol's Nelson field, as well Maria Conchita, a 32,518-acre block located in the region of La Guajira. NGE's team has extensive technical expertise and a proven track record of building companies and creating value in South America. For more information, please visit SEDAR (www.sedar.com) and the Company's website (www.ngenergyintl.com).