Formation Minerals, Inc. Secures $10 Million Financing Deal

Formation Minerals, Inc. Engages GHS for Equity Financing

Formation Minerals, Inc. (OTCQB: FOMI) has taken a significant step towards expansion by announcing a new equity financing agreement with GHS Investments, LLC. This partnership is set to raise up to $10,000,000, aimed at bolstering the company's capital for future projects. GHS Investments, a reputable group specializing in fund management for emerging companies, will purchase shares under specific terms detailing their obligations and the company's rights.

Details of the Equity Financing Agreement

The agreement allows Formation Minerals, Inc. to sell shares to GHS at a substantial discount, with an initial purchase price fixed at eighty percent (80%) of the market value. The transactions can occur over a 24-month span, post SEC registration approval. The intent behind this arrangement is to ensure that the company not only has immediate access to crucial funds but also the flexibility to manage their capital in alignment with market conditions.

Utilization of Proceeds

Formation plans to channel the net proceeds from this transaction towards general corporate needs, operational costs, and strategic acquisitions. This financial maneuver is expected to enhance the company's growth trajectory, allowing them to pursue opportunities that would benefit stakeholders and solidify their market position.

Scott Cox's Vision for Growth

CEO Scott Cox expressed enthusiasm regarding this agreement, highlighting its importance for Formation post-merger and uplisting to the OTCQB. He emphasized the organization's distinct approach to acquiring revenue-generating assets in the energy sector. The strategy revolves around a 'buy low, sell high' philosophy, indicative of their commitment to optimizing shareholder value.

Future Strategies in Asset Management

Under Cox's leadership, the company remains focused on refining its portfolio to maximize returns while ensuring long-term sustainability for its investors. The engagement with GHS Investments marks a pivotal milestone, positioning Formation to capitalize on advantageous market conditions and further develop its asset base.

About Formation Minerals, Inc.

Formation Minerals, Inc. is engaged in the acquisition and management of oil and gas mineral rights across several productive basins in the U.S. The company currently holds interests in prominent regions such as Colorado, Louisiana, Texas, West Virginia, and Oklahoma, all known for their robust energy production capabilities. This diversified asset portfolio underlines Formation's dedication to delivering significant returns to shareholders.

Frequently Asked Questions

What is the recent financing agreement about?

Formation Minerals, Inc. has entered into a financing agreement with GHS Investments to raise up to $10 million for growth and operational needs.

How will the funds be used?

The net proceeds will be allocated for various purposes, including corporate needs, working capital, and strategic acquisitions.

What is the significance of this deal for Formation Minerals?

This agreement is a crucial milestone that is expected to facilitate their growth strategy post-merger and uplisting.

What is Scott Cox's outlook on oil and gas investments?

Scott Cox expressed optimism about the oil and gas sector, highlighting their strategy of acquiring revenue-producing assets as a key focus.

Where does Formation hold its mineral interests?

Formation holds mineral and royalty interests in several key U.S. basins including the DJ Basin, Haynesville Shale, and the Permian Basin.

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