G2 Energy completes shares for debt settlement
2023-07-04 20:04 ET - News Release
Mr. Slawek Smulewicz reports
G2 ISSUES SHARES TO SETTLE DEBT
Pursuant to G2 Energy Corp.'s news release dated June 23, 2023, it has issued an aggregate amount of 7,496,045 units at a deemed price of five cents per debt settlement unit to satisfy an aggregate amount of $374,802.25 of bona fide debt to certain creditors of the company.
Each debt settlement unit comprises one common share and one common share purchase warrant, whereby each debt settlement warrant entitles the holder to purchase one additional share in the capital of the company for a period of 24 months from closing at an exercise price of eight cents per share, 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 stock 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 to the holder of the warrants that the warrants will expire at 5 p.m. PT 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.
As creditors to the debt settlements, John Costigan, Markus Mair, David Whitby, Slawomir Smulewicz and Gabriel Queiroz were issued either directly or indirectly and aggregate of 4,468,447 units to settle an aggregate amount of approximately $223,422 in bona fide debt of the issuer. Participation of insiders of the company in the debt settlements will constitute a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company intends to rely on the exemption from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(a) of MI 61-101 and the exemption from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(a) of MI 61-101.
The securities issued pursuant to the first tranche of the private placement are subject to a statutory hold period of four-months-plus-one-day hold that expires on Oct. 31, 2023, respectively.
About G2 Energy Corp.
G2 is a junior oil and gas producer listed on the CSE. 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.