Condor Energies closes $13.65M debenture offering

Mr. Don Streu reports CONDOR ANNOUNCES CLOSING OF $13.65 MILLION BROKERED FINANCING TO ACCELERATE THE 12 WELL DRILLING PROGRAM IN UZBEKISTAN Condor Energies Inc. has closed its previously announced brokered private placement of convertible debentures of the company at a price of $1,000 per convertible debenture for aggregate gross proceeds of $13.65-million, including the partial exercise of the overallotment option. The offering was led by Research Capital Corp., as the sole bookrunner and co-lead agent, together with Canaccord Genuity Corp., as co-lead agent, on behalf of a syndicate of agents, including Auctus Advisors LLP. Each convertible debenture has a principal value of $1,000, convertible into common shares of the company at a conversion price of $2 per common share, maturing on Dec. 24, 2028. Interest shall accrue on the convertible debentures at 12 per cent per annum, payable semi-annually in cash. The convertible debentures will be repaid in cash on the maturity date. The net proceeds of the offering will be used to accelerate development activities in Uzbekistan by mobilizing a second drilling rig to execute the planned 12-well drilling program in 2026 and for infield compression facilities, which are expected to significantly increase production and cash flow from operations, working capital and general corporate purposes. The company plans to operate two drilling rigs throughout 2026 drilling back-to-back wells, alongside a separate workover rig focused on production optimization and continued success from the company's continuing re-entry program. The offering was completed by way of private placement exemptions in each of the provinces of Canada and other qualifying jurisdictions, including the United States. The convertible debentures issued under the offering and the common shares issuable upon conversion of the convertible debentures are subject to a hold period expiring April 25, 2026. In connection with the offering, the company paid to the agents a cash commission of $492,700 and issued to the agents 111,675 broker warrants. Each broker warrant entitles the holder thereof to acquire one common share at a price of $2 per common share at any time until Dec. 24, 2028. In addition, the company paid to the agents an advisory fee of $218,000 and issued 52,500 advisory warrants of the company on the same terms as the broker warrants. We seek Safe Harbor.