WESTGATE ENERGY ANNOUNCES ANTICIPATED CONVERSION OF CONVERTIBLE DEBENTURE

Executive Summary

• Westgate Energy Inc. announced that its director Art Agolli will convert the convertible unsecured debentures issued on March 7 2025 into 2,800,000 common shares at a $0.25 conversion price, subject to TSXV approval.
• The company will also issue additional shares (≈317,000) to cover accrued interest up to February 27 2026 and further shares equal to the remaining accrued interest calculated on the conversion date.
• The expiry of the private‑placement warrants is being extended one year—from March 7 2026 to March 7 2027—while all other warrant terms remain unchanged.

Key Details

• Original Private Placement (Mar 7 2025): 700 units at $1,000 per unit for gross proceeds of $700,000. Each unit consisted of a $1,000 principal convertible debenture and 285 common‑share purchase warrants ($0.27 exercise price).
• Conversion Mechanics: Convertible debentures will be converted into common shares at $0.25 per share, resulting in 2,800,000 new common shares issued to the Debenture Holder.
• Accrued Interest Settlement:
• Interest accrued from issuance to Feb 27 2026 will be satisfied by issuing an additional 316,971 common shares.
• Remaining interest (Feb 27 2026 to conversion date) will be settled by issuing a number of common shares equal to the accrued amount divided by the market price on the conversion date.
• Warrant Amendment: Expiry date extended from March 7 2026 to March 7 2027; all other warrant terms (exercise price $0.27, 285 warrants per unit) unchanged.
• Regulatory Reliance: The share issuances rely on exemptions under Multilateral Instrument 61‑101 (sections 5.5(b) and 5.7(1)(a)) for valuation and minority approval requirements.
• Approvals Required: All transactions are subject to the approval of the TSX Venture Exchange (TSXV).

Notable Quotes

(No direct quotes were provided in the release.)