Nexera Energy Inc. Proposes Private Placement Offering
Nexera Energy Inc. (TSXV: NGY) (OTC Pink: EMBYF) has announced its intention to launch a non-brokered private placement that could raise up to $600,000 through the sale of a maximum of 24,000,000 common shares. The shares will be offered as part of a unit structure, where each unit is priced at $0.025. Each unit will include one common share and one share purchase warrant, allowing investors to purchase an additional common share at $0.10 within a 24-month period following the issuance of the units.
Details of the Offering and Warrant Terms
The offering includes specific terms regarding the share purchase warrants, which feature an acceleration provision. Should the trading price of the common shares reach or exceed $0.15 for 30 consecutive trading days, the expiry date for the warrants will be shortened to 30 days after a press release is issued to inform warrant holders. This provision aims to incentivize early exercise of the warrants under favorable market conditions.
Utilization of Proceeds from the Offering
Nexera plans to allocate the proceeds from this offering primarily to its wholly owned subsidiary, Production Resources Inc. (PRI), to enhance its oil and gas service capabilities. Funds will be directed toward acquiring new equipment to bolster PRI’s cement services segment, which also includes well servicing operations. This investment is expected to not only support Nexera’s own wells but also generate additional revenue by servicing other operators in the region, where demand is anticipated to be high.
Expected Allocation of Funds
The company has outlined a specific breakdown of how it intends to use the funds raised: $390,000 will be set aside for equipment purchases, $60,000 will be allocated for refurbishing existing equipment, and $100,000 will go toward labor costs. Any remaining funds after these expenditures will be directed to working capital needs.
Regulatory Compliance and Holding Period
All common shares and warrants issued through this private placement will be subjected to a four-month hold period, restricting their sale in the market during that time. It’s also noted that the warrants will not be listed on any stock exchange, and the completion of this offering is contingent upon the approval of the TSX Venture Exchange.
About Nexera Energy Inc.
Nexera Energy Inc. operates in the energy sector, focusing on oil production in Southwest Texas. The company manages several projects, including the Lavernia, Wooden Horse, and Stockdale Horizon Projects, and has recently acquired full ownership of Production Resources Inc., another oil company located in South Texas.
Forward-Looking Statements Disclaimer
This announcement includes forward-looking statements that go beyond historical facts, particularly regarding the timeline for financial filings. While the management believes that these expectations are reasonable, actual results may vary due to various risks and uncertainties. The company does not commit to updating these forward-looking statements unless required by applicable securities laws, and advises readers to avoid placing undue reliance on such information.
Regulatory Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider is responsible for the accuracy or adequacy of this press release.
