Westgate gets cond. OK for warrant incentive program

Executive Summary

• Westgate Energy Inc. has received conditional acceptance from the TSX Venture Exchange to launch a warrant exercise incentive program for 16,241,267 outstanding common share purchase warrants.
• The program runs from March 25, 2026, to April 24, 2026, offering holders an additional 0.5 warrant for every eligible warrant exercised, with an exercise price of 35 cents per share.
• The company expects to raise up to approximately $3.9 million in gross proceeds, which will be used to fund predrilling costs for a potential spring drilling program, operating cost reductions at the Beaverdam project, and general working capital.

Key Details

• Warrant Details: The program applies to 16,241,267 warrants issued in a best-efforts offering that closed on April 2, 2025. Original exercise price is 24 cents per share, expiring April 2, 2027.
• Incentive Structure:
  • Eligible holders exercising between March 25, 2026, and April 24, 2026, receive:
    • (A) The original warrant share (1 common share per warrant).
    • (B) One-half of an additional common share purchase warrant.
  • The additional incentive warrant allows acquisition of one common share at 35 cents per share, expiring October 24, 2027.
• Acceleration Clause: If the volume-weighted average price (VWAP) of Westgate’s common shares on the TSX-V equals or exceeds 45 cents for 10 consecutive trading days, the company may accelerate the expiry of the incentive warrants by issuing a press release, with expiry occurring 30 calendar days from that notice.
• Financial Impact:
  • Gross Proceeds: Up to approximately $3,897,900.
  • Shares Issued: Up to 16,241,267 warrant shares.
  • Incentive Warrants Issued: Up to 8,270,633 incentive warrants.
• Use of Proceeds: Financing predrilling costs for a potential spring drilling program, additional operating cost reduction activities at Beaverdam, and general working capital.
• Regulatory & Legal Terms:
  • Incentive warrants are subject to a statutory hold period of four months and one day from issuance.
  • A supplemental warrant indenture will be entered into with Odyssey Trust Company.
  • Holders who would become new insiders/control persons via exercise are generally prohibited from exercising unless TSX-V approval is obtained.
  • Unexercised eligible warrants after the incentive period continue under original terms until April 2, 2027.

Notable Quotes

• None provided in the text.