Financial News
Nexera Energy Signs Letter of Intent with Lender to Convert All Outstanding Loans to Royalty Structure
CALGARY, AB / ACCESSWIRE / March 20, 2023 / Nexera Energy Inc. (TSX Venture:NGY) (the "Corporation", the "Company" or "Nexera") is pleased to announce that the Company, and the Company's sole private lender ("Lender"), have signed a letter of intent whereby all outstanding loans, totalling $13,961,222, will be converted to a sliding scale gross overriding royalty ("GORR"). Additionally, the GORR will be capped at a maximum of $10,000,000.
The GORR will be commodity price sensitive and paid out over time on the gross proceeds from the Company's oil and gas revenue. Final terms of the GORR structure will be released upon execution of the definitive agreement, expected to be completed shortly. The Lender is extremely supportive, and the new GORR agreement will offer Nexera opportunities to see revenue and earnings growth without being subject to loans with default provisions that impede the Company's ability to grow.
Shelby Beattie, CEO of Nexera commented, "We are thrilled to have reached this agreement with our Lender as this is transformational for the Company. Converting the loans to a GORR will clean up our balance sheet and allow us the ability to rapidly grow the Company with each new well that we drill. I want to thank the Lender for their support in seeing our vision to build Nexera over the next several years as we take advantage of higher oil prices and a bullish outlook in the sector."
For further information, please contact:
Nexera Energy Inc.
Shelby D. Beattie, President
(403) 262-6000
info@nexeraenergy.com
www.nexeraenergy.com
Investor Cubed Inc.
Neil Simon, CEO
647-258-3310
nsimon@investor3.ca
www.investor3.ca
About Nexera Energy Inc.
Nexera Energy Inc. (TSX Venture: NGY) is an energy company with oil producing properties in Southwest Texas. Nexera is owner and operator of the Lavernia, Wooden Horse and Stockdale Horizon Projects. The Company also owns 100% of Production Resources Inc., a South Texas oil company.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein relating to the timing of the filing of financial statements constitutes forward-looking statements. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Nexera Energy Inc.
View source version on accesswire.com:
https://www.accesswire.com/744592/Nexera-Energy-Signs-Letter-of-Intent-with-Lender-to-Convert-All-Outstanding-Loans-to-Royalty-Structure
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