Stock in NG Energy International Corp (OTCQX-GASXF) surged significantly as it increased 10.89% to $1.12 at last close. In the last week, GASXF stock performed 21.61% better than its monthly performance of 20.82%. GasXF stock charted a steady rise on the announcement of a private placement.
GASXF is now seeking how much funding?
As a publicly traded exploration and production company, NG Energy is committed to providing a sustainable and clean energy solution for Colombia. This will be accomplished through GASXF’s two concessions, SN-9, a 311,353 acres block next to Canacol’s Nelson field, and Maria Conchita, a 32,518-acre block in the La Guajira region. The team at GASXF has extensive experience building companies in South America and creating value.
On Friday, NG Energy announced that the previously announced financing would be increased to C$8,000,000.
- As a result of this, GASXF is now offering 8,000,000 units (each called “Unit”), at a price of $1 per unit, for a total gross proceeds of $8,000,000.
- GASXF had originally planned to conduct a non-brokered private placement for 7,000,000 units, at a price of C$1.00 each, for a gross proceeds of C$7,00,000.
- Units in the revised initiative will comprise one common share with one share purchase warrant, with each Warrant entitle the holder to purchase one additional common share at a price of $2.20 for a period of 24 months from the date of issuance.
- In the event that the closing price of the common shares of GASXF on the TSX Venture Exchange exceeds $2.00 for twenty consecutive trading days, the Warrants may be subject to accelerated expiry.
- TSX Venture Exchange approval is required to complete the private placement.
- Under the terms of the private placement, the securities offered in connection with the offering are subject to a statutory hold period of four months and one day.
- Certain eligible parties who introduce subscribers to GASXF will receive finders’ fees of 6%, payable in cash or Units.
GASXF’s exploration efforts:
NG Energy (GASXF) said last month it met all the environmental requirements asked by the National Environmental Licensing Authority (“ANLA”). As part of the Environmental License, GASXF is permitted to drill in the SN9 block for exploratory purposes. Besides the construction of civil works and production infrastructure, the license also covers the development of up to 11 well sites, totaling 22 wells.
The road and pad for Magico-1X will be constructed by NG Energy (GASXF) immediately. CPVEN has contracted with a drilling rig and it is waiting in a nearby location, ready to be mounted and start drilling within the first week of November 2021