Condor Energies Boosts Financing to $17 Million Amid Investor Demand

Condor Energies Upsizes Financing to $17 Million

Condor Energies Inc. (“Condor” or the “Company”) (TSX: CDR) is excited to share that it has successfully upsized its previous brokered financing due to increasing demand from investors. Now, the Company plans to offer common shares at a price of $1.90 each, with a total gross target of $17 million from this offering.

Details of the Financing Offering

The financing arrangement is being managed by Research Capital Corporation as the lead agent, supported by a syndicate of agents including Auctus Advisors LLP and Canaccord Genuity Corp. The offering consists of approximately $10 million through the Listed Issuer Financing Exemption (LIFE Offering) and about $7 million from a private placement targeted at accredited investors.

Strategic Investor Participation

A notable aspect of this offering is the participation from EurAsia Resource Value S.E., who is the largest shareholder of Condor. This strategic involvement signifies strong confidence in the Company’s operational future.

Utilization of Proceeds

The funds generated from this offering are earmarked for several key activities. They will primarily support the workover program aimed at enhancing production efficiency in Uzbekistan. This includes undertaking a comprehensive drilling program in 2025, purchasing additional flowline water separation systems, upgrading field facilities, and meeting general Working Capital needs.

Expansion of Workover Program

The Company has expanded its ongoing workover program, which began in mid-2024. This project includes important enhancements such as installing plunger lifts, replacing production tubing, and perforating unexploited pay zones. Additionally, a third service rig is slated to start operations in early 2025, indicating the Company’s commitment to extensive production enhancement.

Agents' Option to Expand Offering

The financing plan includes an option for agents to increase the Accredited Investor Offering size by up to $2,550,000. This flexibility allows the Company to capitalize on investor interest leading up to the closing of the offering.

Offering Structure and Rights

Plans are in place to issue 5,263,157 common shares under the LIFE Offering across Canada, except Quebec, and qualifying jurisdictions, including the United States. Additionally, the Accredited Investor Offering is set to provide up to 5,026,315 shares, subject to certain exemptions. The LIFE Shares will not be subject to a hold period, while the Accredited Investor Shares will enforce a holding period that spans four months and a day post-closing.

Important Dates for Investors

The anticipated date for closing the offering is set for early December, contingent upon obtaining necessary regulatory approvals, including consent from the Toronto Stock Exchange.

Agent Compensation Details

For their role in this offering, the agents will receive a cash commission of 6% of the gross proceeds and broker warrants enabling them to acquire additional common shares for a period of two years at a price of $2.20 each. This structure not only incentivizes the agents but also aligns their interests with the growth of the Company.

Company Mission and Future Prospects

Condor aims to establish itself as a key player in energy transition, focusing on markets in both Europe and Asia. Through its operations in Uzbekistan, the Company is dedicated to enhancing natural gas production and maximizing resource recovery from its existing fields. Efforts to expand liquefied natural gas (LNG) facilities in Kazakhstan and lithium brine production are also on the horizon.

Frequently Asked Questions

What is the purpose of the financing for Condor Energies?

The financing will support workover programs, infrastructure upgrades, and general corporate needs, primarily in Uzbekistan.

Who is leading the offering?

The offering is being led by Research Capital Corporation along with other financial agents.

When is the expected closure date for the offering?

The offering is anticipated to close in early December, contingent on regulatory approvals.

What is the pricing of the Common Shares in this offering?

The Common Shares are offered at a price of $1.90 each.

How will the funds be used specifically?

The funds will be directed toward increasing production capabilities and enhancing operational efficiencies in Uzbekistan.

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