Condor Energies closes $13.65M debenture offering

Executive Summary

• Condor Energies Inc. has closed a brokered private placement of convertible debentures, raising aggregate gross proceeds of $13.65 million.
• The funds are designated to accelerate the company's 12-well drilling program in Uzbekistan by mobilizing a second drilling rig for 2026 operations and funding infield compression facilities.
• The financing includes convertible debentures with a 12% interest rate, a conversion price of $2 per share, and associated broker/advisory warrants issued to the underwriting agents.

Key Details

• Transaction Structure: Brokered private placement of convertible debentures.
• Gross Proceeds: $13.65 million (including partial exercise of overallotment option).
• Instrument Terms:
  • Principal value: $1,000 per convertible debenture.
  • Conversion Price: $2 per common share.
  • Interest Rate: 12% per annum, payable semi-annually in cash.
  • Maturity Date: December 24, 2028.
  • Repayment: In cash on the maturity date.
• Use of Proceeds:
  • Mobilizing a second drilling rig to execute the planned 12-well drilling program in 2026.
  • Funding infield compression facilities to increase production and cash flow.
  • Working capital and general corporate purposes.
• Underwriters/Agents:
  • Sole Bookrunner/Co-Lead Agent: Research Capital Corp.
  • Co-Lead Agent: Canaccord Genuity Corp.
  • Syndicate Agent: Auctus Advisors LLP.
• Agent Compensation:
  • Cash Commission: $492,700 paid to agents.
  • Broker Warrants: 111,675 warrants issued to agents (exercise price $2, expiry Dec 24, 2028).
  • Advisory Fee: $218,000 paid to agents.
  • Advisory Warrants: 52,500 warrants issued to agents (same terms as broker warrants).
• Regulatory/Hold Period:
  • Completed via private placement exemptions in Canada and the US.
  • Hold period for debentures and underlying shares expires April 25, 2026.