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CGX Energy Announces US$58 Million Equity Rights Offering, Providing an Equal and Exciting Opportunity to Participate for All Shareholders
Frontera Energy to Provide Anchor Support, Backstop and US$20 Million Advance Through a Bridge...
About this update from Cgx Energy Inc.
[{"type":"text","content":"CGX Energy Announces US$58 Million Equity Rights Offering, Providing an Equal and Exciting Opportunity to Participate for All ShareholdersFrontera Energy to Provide Anchor Support, Backstop and US$20 Million Advance Through a Bridge LoanToronto, Ontario--(Newsfile Corp. - September 24, 2021) - CGX Energy Inc. (TSXV: OYL) (\"CGX\" or the \"Corporation\") announced today that it has entered into a term sheet with Frontera Energy Corporation (TSX: FEC) (\"Frontera\"), the majority shareholder of CGX and joint venture partner in the Petroleum Prospecting Licenses for the Corentyne and Demerara blocks offshore Guyana (the \"Joint Venture\"), for a US$20 million rights offering bridge loan (the \"Rights Offering Bridge Loan\") that will enable CGX to continue to fund its share of costs related to the Corentyne, Demerara and Berbice blocks, the Berbice Deepwater Port, and other budgeted costs as agreed to by Frontera. The Rights Offering Bridge Loan is an advance on Frontera's participation in a rights offering (the \"Rights Offering\"). CGX will offer rights (each, a \"Right\") to holders of its common shares (\"Common Shares\") at the close of business on the record date of October 1, 2021, on the basis of 0.157 of one Right for each Common Share held. Each whole Right will entitle the holder to subscribe for one (1) Common Share upon payment of the subscription price of C$1.63 (the \"Basic Subscription Privilege\"). There are currently 287,588,662 Common Shares issued and outstanding. The Rights Offering (together with the Rights Offering Bridge Loan) will raise gross proceeds of approximately C$73,600,000 (equivalent to approximately US$58,160,000), based on the current Common Shares issued and outstanding. Frontera has agreed to provide a standby commitment to purchase any unexercised Rights in connection with the Rights Offering as detailed below.The Rights will be listed for trading on the TSX Venture Exchange (the \"TSXV\") and the Common Shares are expected to commence trading on the TSXV on an ex-rights basis at the opening of business on September 29, 2021. This means that the Common Shares purchased on or following such date will not be entitled to receive Rights under the Rights Offering. At that time, the Rights are expected to be posted for trading on the TSXV under the symbol \"OYL.RT\".The Rights Offering will expire a...