Calgary-based Criterium Energy Ltd. has announced an increase in financing size due to strong investor demand. The company expects to raise approximately C$18.9 million in gross proceeds, led by Research Capital Corporation. The financing is in connection with the acquisition of Mont D’Or Petroleum Limited.
The increased financing includes an underwritten offering of 60,910,000 equity subscription receipts of the company at a price of C$0.11 per receipt, bringing in gross proceeds of approximately C$6.7 million. Each equity subscription receipt will entitle the holder to receive one unit of the company upon satisfaction of certain conditions.
The financing is also anchored by a strategic investor, who will be participating for an aggregate of C$14.7 million, including C$12.2 million through a convertible loan. The convertible loan will be issued on or before the closing of the acquisition and is subject to various conditions, including the closing of the public offering and approval from the TSX Venture Exchange.
The net proceeds from the financing will be used for drilling activities, planning associated with a gas monetization tie-in project, and repaying a portion of debt in connection with the acquisition. Upon closing of the public offering, the net proceeds will be placed in escrow and released upon satisfaction of certain conditions.
The public offering is expected to close on or about the week of October 16, 2023, subject to regulatory approvals. The convertible loan and warrants issued will be subject to a statutory hold period. The equity subscription receipts will be offered through a short form prospectus in Canada and may be offered in the United States on a private placement basis.
The financing reflects strong investor confidence in Criterium Energy’s operations and its acquisition of Mont D’Or Petroleum Limited. The funds raised will support the company’s drilling activities and expansion plans in Southeast Asia, further strengthening its position in the energy development and production sector.