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Labrador Technologies Inc. Announces Proposed Oil and Gas Property Acquisition, Private Placements and Credit Facility
CALGARY, AB / ACCESSWIRE / April 5, 2022 / Labrador Technologies Inc. (the " Corporation " o...
About this update from Labrador Resources Inc
[{"type":"text","content":"Labrador Technologies Inc. Announces Proposed Oil and Gas Property Acquisition, Private Placements and Credit FacilityCALGARY, AB / ACCESSWIRE / April 5, 2022 / Labrador Technologies Inc. (the \"Corporation\" or \"Labrador\") (TSXV:LTX) is pleased to announce that it has entered into a letter of intent (\"LOI\") dated April 4, 2022 with Kasten Energy Inc. (the \"Vendor\") pertaining to the proposed acquisition of a 51% working interest in oil and gas properties in the Atlee area of Alberta (the \"Acquisition\"). The Acquisition constitutes an arms' length transaction as defined in the policies of the TSX Venture Exchange (\"TSXV\") and is a Change of Business (as such term is defined in the policies of the TSXV) for Labrador.In connection with the Acquisition, Labrador intends to complete a private placement of common shares at a price of $0.045 per common share for gross proceeds of up to $200,000 (the \"PP\") and a private placement of \"flow-through\" common shares at a price of $0.05 per flow-through common share for gross proceeds of up to $5,000,000 (the \"Flow-Through PP\") (together, the \"Concurrent Financings\") (collectively, the Acquisition and the Concurrent Financings are referred to as the \"Transactions\"). The PP is being completed to provide the Corporation with unallocated working capital while the Flow-Through PP is being completed to provide capital to the Corporation to advance opportunities within the oil and gas business.The Corporation also announces that it plans to enter into a credit facility (the \"Credit Facility\") with KSS Capital Partners Inc. (the \"Lender\") in the amount of $500,000. The Credit Facility also constitutes an arms' length transaction. Advances made pursuant to the Credit Facility will provide immediate working capital to fund current outstanding payables, to fund the costs of holding the Special Meeting (as defined below) and fund the costs of preparing an engineering evaluation of the oil and gas property that is the subject of the Acquisition. Additionally, the Credit Facility will provide the funds necessary for the Corporation to pursue the Transactions and to repay certain longstanding payables of the Corporation (see \"Credit Facility\" below). Certain advances under the Credit Facility will be required, and made, before the Acquisition and the Concurrent Financings can be ...