Business
CGX Energy Announces Closing of Over-Subscribed Equity Rights Offering
CGX Energy Announces Closing of Over-Subscribed Equity Rights Offering Canada News...
About this update from Cgx Energy Inc.
[{"type":"text","content":"\n\n\n\nCGX Energy Announces Closing of Over-Subscribed Equity Rights Offering\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, March 14, 2019\n\n\n\nTORONTO, March 14, 2019 /CNW/ - CGX Energy Inc. (TSXV: OYL) (\"CGX\" or the \"Corporation\") is pleased to announce that it has completed its previously announced rights offering (the \"Offering\"). Pursuant to the Offering, the Corporation issued to holders of its outstanding common shares (the \"Common Shares\") of record as at the close of business on February 11, 2019 an aggregate of 116,102,318 transferable rights (each, a \"Right\") to subscribe for, until 5:00 p.m. (Toronto time) on March 12, 2019 (the \"Expiry Date\"), an aggregate of 116,102,318 Common Shares. Each Right entitled the holder thereof to subscribe for one Common Share upon payment of the subscription price of $0.25 per Common Share prior to the Expiry Date. The Offering was over-subscribed and the Corporation issued 116,102,318 Common Shares, the maximum number of Common Shares available for issuance under the terms of the Offering, based on shareholders' exercise of the basic subscription privilege and the additional subscription privilege, allocated pro-rata, for aggregate gross proceeds to the Corporation of $29,025,579.50 (equivalent of approximately US$21,823,744). Following the closing of the Offering, CGX has 232,204,636 Common Shares issued and outstanding.\nFrontera Energy Corporation (\"Frontera\"), an insider and the Corporation's largest shareholder, acquired an aggregate of 101,316,916 Common Shares in connection with the Offering pursuant to the exercise of Rights under the Offering. Frontera now owns an aggregate of 157,383,129 Common Shares on a non-diluted basis, which represents approximately 67.78% of the issued and outstanding Common Shares following closing. In consideration for the standby commitment provided by Frontera under the Offering, Frontera received 5-year warrants to purchase up to 15,009,026 Common Shares at an exercise price equal to $0.415 per Common Share. As a result, ...