Cancambria closes $3.27-million private placement

Executive Summary

• Cancambria Energy Corp. has closed a second upsize of its non-brokered private placement, raising gross proceeds of $3,275,350.
• The financing was executed through the sale of 8,188,375 units at $0.40 per unit, with insiders and management participating significantly.
• Proceeds are designated for long-lead items for the 2026 drilling program, technical resource evaluation of the Kiskunhalas concession, joint venture support for the BA-IX tight gas field, and general corporate purposes.

Key Details

• Gross Proceeds: $3,275,350
• Net Proceeds: Not explicitly stated, but gross less finder's fees and expenses.
• Units Sold: 8,188,375 units
• Price Per Unit: $0.40 CAD
• Unit Composition: Each unit consists of one common share and one share purchase warrant.
• Warrant Terms:
  • Each warrant allows the acquisition of one additional common share.
  • Exercise Price: $0.50 per warrant share.
  • Expiration: Three years following the closing of the offering.
• Hold Period: Four months and one day, expiring May 30, 2026.
• Use of Proceeds:
  • Procurement of long-lead items for the start of the 2026 drilling program.
  • Continuing technical resource evaluation of the Kiskunhalas concession area.
  • Support of the joint venture process for the BA-IX tight gas field.
  • General corporate purposes.
• Finder's Fees:
  • Cash fee paid: $156,924.
  • Warrants issued: 392,310 non-transferable finders' warrants.
  • Finder's Warrant Terms: Entitles holder to acquire one common share at $0.50 per share, expiring Jan. 29, 2029.
• Insider Participation:
  • Insiders purchased 250,000 units.
  • This constitutes a related-party transaction under Multilateral Instrument 61-101.
  • Exemptions from formal valuation and minority shareholder approval were relied upon as insider participation did not exceed 25% of the company's market capitalization.
• Management Participation: Management and key associates purchased shares representing approximately 5% of the units offered.

Notable Quotes

• "We are very pleased to announce the successful close of our twice-upsized private placement and are grateful for the continued support of our existing shareholders, as well as the strong interest from new investors joining Cancambria... This financing positions the company well as we continue preparations to initiate the Kiskunhalas project drilling program. The proceeds will be used to secure long-lead time items critical to advancing our development plans." — Dr. Paul Clarke, Chief Executive Officer