Business
Formation Minerals, Inc. Announces Entry Into $10,000,000 Equity Financing Agreement with GHS Investments, LLC
Formation Minerals, Inc. Announces Entry Into $10,000,000 Equity Financing Agreement with GHS Investments, LLC.
About this update from Formation Minerals, Inc.
[{"type":"text","content":"\n JACKSBORO, Texas, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Formation Minerals, Inc. (”Formation\" or the \"Company\") (OTCQB: FOMI), a pure play oil and gas company based in Jacksboro, Texas, engaged in the acquisition and management of mineral and royalty interests in lower risk, onshore oil and gas properties within the major oil and gas plays in the United States, today announced that on December 31, 2024, the Company entered into an Equity Financing Agreement (the “Agreement”) with GHS Investments, LLC (\"GHS\"), a leading private investment and management group providing financial solutions for high-potential small cap companies, to raise up to $10,000,000, subject to the satisfaction or waiver of certain customary conditions. GHS has successfully invested in multiple portfolio companies in the small cap space seeking capital to grow and scale their existing businesses. Under the terms and subject to the conditions of the Agreement, the Company has the right, but not the obligation, to sell to GHS, and GHS is obligated to purchase up to $10.0 million shares of the Company’s common stock, subject to certain limitations set forth in the Agreement, at an initial purchase price equal to eighty percent (80%) of the market price of such shares of common stock, and may occur from time to time, at the Company’s sole discretion, over the 24-month period commencing on the date on which the Securities and Exchange Commission (the “SEC”) declares the registration statement covering the resale by GHS of the shares of common stock, which have been and may be issued to GHS under the Agreement, effective under the Securities Act of 1933, as amended (the “Securities Act”). The Company intends to file a Current Report on Form 8-K with respect to the Agreement, which will include additional information regarding the terms of the Agreement, which will be available on the SEC’s website. The Company intends to use the net proceeds from the sale of any shares under the Agreement for general corporate and working capital purposes and acquisitions of assets, businesses or operations or for other purposes that the board of directors of the Company, in good faith, deems to be in the best interest of the Company. “The capital from GHS is an important milestone for providing the foundation f...