Frontera now holds 76.98 per cent issued and outstanding CGX Energy common shares
Frontera Energy Corporation has acquired 45,083,314 common shares of CGX Energy Inc. with an aggregate purchase price of $73,596,681.
Frontera is a Canadian oil-and-gas company involved in exploration, development, production, transportation, storage and sale in South America, including related investments in both upstream and midstream facilities.
CGX is an oil and gas exploration company based in Canada that is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in the Berbice, Guyana.
As the majority shareholder of CGX prior to the issuance of the common shares and the warrants, Frontera owned or exercised control over approximately 73.85 per cent of the issued and outstanding CGX common shares on a non-diluted basis.
As a result of the acquisition, Frontera now holds approximately 76.98 per cent of the issued and outstanding common shares, on a non-diluted basis, and now owns or exercises control over 78.79 per cent of the issued and outstanding common shares on a partially diluted basis.
The acquisition follows the previously announced rights offering by CGX on September 24. Frontera’s standby commitment entitles CGX to five-year warrants to purchase up to 1,173,774 CGX common shares at $1.91 per common share.
In Frontera’s press release , the company expressed its interest in the possibility of acquiring additional CGX Common Shares and/or other equity, debt or other securities or instruments of CGX in the open market or otherwise, depending on market and other conditions.
In a similar news release by CGX, the company stated that the funds raised through the rights offering will be placed towards the exploration and development of their investments in, onshore, and offshore Guyana, particularly the Corentyne and Demerara blocks, the Berbice blocks, and the Berbice Deep Water Port.
