Hertz Energy Inc. Announces LIFE and Flow-Through Offering for Gross Proceeds up to $5,000,000
Executive Summary
- Hertz Energy announced a non‑brokered private placement of up to 5,000,000 Units at $0.40 per Unit for gross proceeds of up to $2 million (the “LIFE Offering”).
- The company also intends a flow‑through offering of up to 6,000,000 FT Units at $0.50 per FT Unit for gross proceeds of up to $3 million (the “FT Offering”).
- Proceeds will fund exploration on the newly optioned Crag‑Rod properties in Yukon (including the Craig silver‑lead‑zinc deposit) and the Lake George Antimony‑Tungsten‑Gold project in New Brunswick, as well as working capital.
Key Details
- Units Structure – LIFE Offering
- Each Unit = 1 Common Share + ½ Common Share purchase warrant (whole warrant = two half‑warrants).
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Warrants exercisable at $0.60 per share for 24 months from issuance.
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FT Units Structure – FT Offering
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Each FT Unit = 1 Flow‑through Common Share + ½ Common Share purchase warrant (same terms as above).
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Pricing & Proceeds
- LIFE Offering: $0.40 per Unit → up to $2,000,000 gross proceeds.
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FT Offering: $0.50 per FT Unit → up to $3,000,000 gross proceeds.
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Use of Proceeds
- Exploration work on Crag‑Rod properties (Yukon) and Craig Silver Project.
- Exploration on Lake George Antimony‑Tungsten‑Gold (“Tungmony”) project in New Brunswick.
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Working capital purposes.
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Flow‑Through Tax Benefits
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FT Shares qualify as “Canadian Exploration Expenses” under the Income Tax Act, to be renounced to subscribers by Dec 31 2026, with qualifying expenditures incurred no later than Dec 31 2027.
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Closing Timeline
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Expected closing of both offerings on or about February 28 2026, subject to change.
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Broker Compensation
- Cash commission of 7.0% of gross proceeds for qualified finders/brokers.
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Additional 7.0% of Units/FT Units issued as “Broker Warrants” (each whole warrant = two half‑warrants, exercisable at the offering price for 24 months).
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Statutory Hold Period
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FT Units subject to a statutory hold period of 4 months + 1 day after issuance.
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Qualified Person
- Scientific and technical information reviewed by Paul Ténière, P.Geo., Qualified Person under NI 43‑101.
Notable Quotes
(No direct CEO/President quotes were included in the release.)