G2 Energy closes $198,800 first tranche of financing
2023-07-12 09:17 ET - News Release
Mr. Slawek Smulewicz reports
G2 ENERGY ANNOUNCES CLOSING OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT
G2 Energy Corp., further to its news releases dated June 14, 2023, and June 23, 2023, has closed the first tranche of its non-brokered private placement by issuing 3,976,000 units in the capital of the company at a price of five cents per unit to raise gross proceeds of $198,800. Each unit consists of one common share in the capital of the company and one common share purchase warrant.
Each warrant will be 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 private placement, 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 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.
Proceeds from the financing are intended to be used in connection with potential new acquisitions, as well as for general working capital.
The company may elect to close the financing in one or more tranches. It is anticipated that insiders of the company may participate in the financing. Participation of insiders of the company in the financing 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 tranche 1 offering are subject to a statutory hold period of four month plus one day that expires on Nov. 12, 2023. No finder's fees were paid in connection with the tranche 1 offering.
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.