On January 11, 2024, Target Capital Inc. (TCI) and Grafton Ventures Energy Holdings Corp. (Grafton) have announced a non-binding letter of intent for a reverse takeover, with TCI becoming “Westgate Energy Inc.” after the transaction. This deal, set to transform TCI into an oil and gas firm, was detailed on January 11, 2024. Concurrently, Grafton aims to raise a minimum of $8 million through brokered and non-brokered private placements, led by Eight Capital and including Haywood Securities, ATB Capital Markets, and Canaccord Genuity.

Grafton, operating since March 2021, focuses on oil and gas exploration in Alberta and Saskatchewan, emphasizing the Mannville Stack fairway. The transaction involves Grafton merging with a TCI subsidiary, exchanging Grafton shares for Westgate shares, with Grafton initiating significant funding efforts to develop its targeted oil fairway and acquisition strategies.

The transaction's structure includes a share exchange rate, leading to a post-transaction share distribution where Grafton shareholders will hold a significant portion of Westgate shares. Expected to complete in March 2024, the deal requires approval from Grafton shareholders, while TCI has already received necessary approvals.

Financially, Grafton reported assets of $9.9 million and liabilities of $5.0 million as of September 2023, with recent revenue and net income figures reflecting its operational status. The legal advisors for this transaction are Torys LLP for Grafton, Stikeman Elliott LLP for TCI, and Dentons Canada LLP for the Brokered Private Placement agents.