Condor Energies Secures $10 Million for Expansion
CALGARY, Alberta – Condor Energies Inc. (“Condor” or the “Company”) (TSX: CDR) proudly announces a significant financial initiative to fuel its operations in Uzbekistan. This move comes as part of a broader strategy to expand the Company's drilling capabilities and enhance production through strategic investments.
Details of the Financing Agreement
The Company has entered into a crucial agreement with Research Capital Corporation, which will serve as the sole bookrunner, along with Canaccord Genuity Corp. acting as co-lead agent. Together, they will orchestrate a brokered private placement of convertible debentures amounting to up to $10 million. Each debenture, priced at $1,000, presents an attractive investment opportunity with a conversion feature into common shares at a set price of $2.00.
This financing arrangement is designed not only to meet immediate capital needs but also to position Condor for sustainable growth. By mobilizing a second drilling rig, the Company plans to aggressively pursue its 12 well drilling program, which is set to commence in the upcoming operational phase.
Use of Proceeds
The net proceeds from this offering will play a pivotal role in accelerating development activities in Uzbekistan. In addition to facilitating the drilling program, the funds will be used for installing in-field compression facilities. These initiatives are expected to significantly enhance the Company's production capabilities and cash flow from operations.
As part of its operational strategy, Condor intends to maintain two drilling rigs throughout the entirety of 2026, ensuring the completion of back-to-back wells. This robust approach also includes a focused effort on production optimization through a separate workover rig that will support ongoing operations.
Compliance and Conditions
The convertible debentures will be offered under private placement exemptions across Canada, with potential opportunities in other jurisdictions where such offerings comply with regulatory requirements. Following the closing of the Offering, which is anticipated around the week of December 22, 2025, there will be a hold period of four months and one day for the issued debentures and common shares.
Condor will also compensate the agents involved with a commission structured at 6% of gross proceeds, along with broker warrants constituting 3% of the common shares applicable upon conversion of the debentures. This lucrative structure is indicative of the Company’s commitment to rewarding its invaluable partners.
Management’s Commitment
Management emphasizes the strategic importance of this financing initiative, portraying it as a critical juncture in the Company's growth trajectory. With a clear vision and a methodical approach, Condor Energies is equipped to navigate the complexities of the oil and gas sector while delivering value to its investors and stakeholders alike.
For additional details or inquiries, interested parties can reach out to the Company directly. The management team includes Don Streu as the President and Chief Executive Officer and Sandy Quilty as the Vice President of Finance and Chief Financial Officer. Contact can be made via telephone at (403) 201-9694.
Frequently Asked Questions
What is the purpose of the $10 million financing?
The financing will accelerate Condor Energies' drilling program in Uzbekistan and enhance production capabilities through investments in infrastructure.
Who are the agents involved in the financing?
Research Capital Corporation and Canaccord Genuity Corp. are the primary agents managing the financing arrangement.
When is the expected closing for the offering?
The offering is anticipated to close around the week of December 22, 2025, contingent upon regulatory approvals.
What are convertible debentures?
Convertible debentures are a type of debt security that can be converted into a predetermined number of the company's shares, offering investors potential equity upside.
Who can invest in this offering?
This offering is available to accredited investors and is being conducted under private placement exemptions in Canada and potentially in other jurisdictions.
