Condor Energies Initiates $10 Million Financing Round
CALGARY, Alberta — Condor Energies Inc. (TSX: CDR) has announced a significant move, engaging in a financing agreement to raise $10 million aimed at accelerating its ambitious drilling program. This financial initiative comes through a partnership with Research Capital Corporation and Canaccord Genuity Corp. as co-lead agents, who are set to support the Company in raising capital by means of a private placement of convertible debentures.
Details of the Financing Structure
Under the terms of the agreement, each convertible debenture, priced at $1,000, can be converted into common shares at a conversion price of $2.00. This structure provides flexibility for investors, while Condor plans to utilize the proceeds to enhance its operational capabilities.
Interest and Maturity Terms
The convertible debentures will carry a 12% per annum interest rate, with interest payments made semi-annually. These debentures are set to mature after 36 months from issuance, ensuring a structured timeline for both the Company and its investors.
Strategic Purpose of the Financing
The funding obtained from this financing round is earmarked for multiple strategic initiatives in Uzbekistan. This includes mobilizing a second drilling rig to begin a planned drilling program consisting of 12 wells throughout the coming year. The addition of a second rig is expected to optimize drilling operations and enhance production capacity significantly.
Production and Optimization Goals
With the newly allocated resources, Condor aims to increase cash flow from operations, support working capital needs, and accelerate the establishment of in-field compression facilities. These actions not only focus on production enhancement but also align with the Company’s broader objectives of ensuring sustainable and efficient energy production.
Offering Scope and Compliance
This financial offering will be made through private placement exemptions across various provinces in Canada and in select jurisdictions where such offerings are permitted. To bolster market confidence, the Convertible Debentures issued will be subject to a mandatory hold period of the statutory duration post-closing.
Agent Incentives and Compensation Structure
As part of the agreement, Condor has committed to compensating the agents with a cash commission of 6% based on the total proceeds from the offering. Additionally, they will also issue broker warrants equivalent to 3% of the common shares that may be derived from the conversion of the debentures. These warrants will be exercisable for a period of three years, offering further incentives for agents involved in the financing process.
Looking Ahead: Closing and Regulatory Approvals
Expected to close around a specific timeline, this offering is conditional on meeting certain regulatory requirements, including obtaining necessary approvals from the Toronto Stock Exchange. Such compliance ensures Condor remains aligned with industry regulations while pursuing growth opportunities.
Company Contact Information
For more insights regarding this financing and future plans, stakeholders can reach out to:
Don Streu, President and CEO
Sandy Quilty, Vice President of Finance and CFO
Telephone: (403) 201-9694
Frequently Asked Questions
What is the purpose of the $10 million financing by Condor Energies?
The financing is aimed at accelerating the development activities in Uzbekistan, including mobilizing a second drilling rig for a planned drilling program.
How will the convertible debentures work?
Each convertible debenture has a principal value of $1,000 and can be converted into common shares at a price of $2.00 per share.
What are the expected interest rates for the financing?
The convertible debentures will carry an interest rate of 12% per annum, payable semi-annually in cash.
What are the implications of the hold period for the convertible debentures?
The convertible debentures will be subjected to a statutory hold period of four months and one day from the closing date, limiting their immediate resale.
Who can I contact for additional information about Condor Energies?
For further inquiries, you can contact Don Streu, CEO, or Sandy Quilty, CFO, via phone at (403) 201-9694.
