Business
CGX Energy Announces Closing of Rights Offering
Toronto, Ontario--(Newsfile Corp. - November 1, 2021) - CGX Energy Inc. (TSXV: OYL) (" CGX "...
About this update from Cgx Energy Inc.
[{"type":"text","content":"CGX Energy Announces Closing of Rights OfferingToronto, Ontario--(Newsfile Corp. - November 1, 2021) - 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 offered to holders of its outstanding common shares (the \"Common Shares\") of record as at the close of business on October 1, 2021 the ability to subscribe for, until 5:00 p.m. (Toronto time) on October 28, 2021 (the \"Expiry Date\"), an aggregate of 45,151,338 Common Shares. Each such holder of Common Shares was offered rights (each, a \"Right\") on the basis of 0.157 of one Right for each Common Share held. Each whole Right entitled the holder to subscribe for one Common Share upon payment of the subscription price of Cdn. $1.63. Following the closing of the Offering, CGX has 334,459,000 Common Shares issued and outstanding. The Rights Offering raised gross proceeds of approximately Cdn. $73,600,000 (equivalent to approximately U.S. $59,600,000).Frontera Energy Corporation (\"Frontera\"), an insider and the Corporation's largest shareholder, acquired an aggregate of 45,083,314 Common Shares pursuant to the exercise of its Rights and its standby commitment under the Offering. In consideration for the standby commitment provided by Frontera under the Offering, Frontera received 5-year warrants to purchase up to 1,173,774 Common Shares at an exercise price equal to U.S. $1.51 per Common Share. As a result, Frontera holds an aggregate of 257,475,469 Common Shares on a non-diluted basis, which represents approximately 76.98% of the issued and outstanding Common Shares and 285,892,120 on a partially-diluted basis (assuming conversion of the U.S. $19 million principal amount under the bridge loan agreement between CGX and Frontera and exercise of the warrants), which represents approximately 78.79 % of the issued and outstanding Common Shares on a partially-diluted basis.CGX intends to use the funds raised through the Offering for the exploration and development of the Corentyne and Demerara blocks offshore Guyana and the Berbice blocks onshore Guyana and for the development of the Berbice Deep Water Port in Guyana. These funds, as well as additional financing alternatives, are expected to provide the funds necessary to meet a...