Nexera Announces Closing of Private Placement of Units

Rhea-AI Summary

Nexera Energy Inc. (TSX Venture:NGY)(OTC PINK:EMBYF) has closed its non-brokered private placement, issuing 31,000,000 units at $0.025 per unit, raising $775,000. Each unit includes one common share and one warrant, exercisable at $0.10 for 24 months. The warrants have an acceleration clause if the stock price exceeds $0.15 for 30 consecutive trading days.

The proceeds will be used by Nexera's subsidiary, Production Resources Inc. (PRI), to expand into cement services for well plugging and abandonment in South Texas. This strategy aims to save costs on Nexera's own wells and generate revenue from other operators. The funds will be allocated to equipment purchases ($170,000), refurbishing ($110,000), field testing ($120,000), permitting ($85,000), and labor ($100,000).

Positive

• Raised $775,000 through private placement
• Expansion into cement services for well plugging and abandonment
• Potential cost savings of up to $12,000 per well on own operations
• New revenue stream from providing services to other operators

Negative

• Dilution of existing shareholders due to issuance of 31,000,000 new units
• Four-month hold period on newly issued shares and warrants

CALGARY, AB AND SAN ANTONIO, TX / ACCESSWIRE / August 22, 2024 / Nexera Energy Inc. (TSX Venture:NGY)(OTC PINK:EMBYF) (the "Corporation", the "Company" or "Nexera") today reported that the Corporation has closed its previously announced non-brokered private placement. Pursuant to this closing, an aggregate 31,000,000 units ("Units") were issued at a price of $0.025 per Unit, for aggregate consideration of $775,000. Each Unit consisted of one (1) Common Share of the Corporation and one (1) share purchase warrant (the "Warrant") (each full Warrant shall entitle the holder thereof to purchase one (1) additional Common Share of the Corporation for a period of 24 months from the issuance of the Units at a price of $0.10) (the "Offering")

The Warrants are subject to an acceleration clause whereby if after four months and one day following the date the Warrants are issued, the closing price of the Common Shares of the Corporation on the principal market on which such shares trade is equal to or exceeds $0.15 for 30 consecutive trading days (with the 30^th such trading date hereafter referred to as the "Eligible Acceleration Date"), the Warrant expiry date shall accelerate to the date which is 30 calendar days following the date a press release is issued by the Corporation announcing the reduced warrant term, provided, no more than five business days following the Eligible Acceleration Date: (i) the press release is issued; and (ii) notices are sent to all warrant holders.

The net proceeds of the Offering will be utilized within the Corporation's wholly owned subsidiary, Production Resources Inc. ("PRI"), to pursue a growing oil and gas services opportunity. PRI is proposing to take advantage of its already owned equipment, along with using net proceeds from the Offering to acquire additional equipment and labour to pursue a cement services branch within PRI. This branch of business would pursue the plugging and abandonment of some of PRI's own wells, along with wells owned by other operators in the South Texas region. This diversified services approach benefits both the Corporation on its own wells owned (through PRI) by not having to pay an external third party to assist with the plugging and abandoning our own wells (saving the Corporation up to $12,000 per well) while at the same time allowing for additional revenues to be potentially generated by assisting other operators in the area with the plugging and abandonment of their wells (of which management of the Corporation believes there to be a high demand for in the area).

Specifically, the Corporation anticipates using the net proceeds as follows: (i) equipment purchases - $170,000; (ii) equipment refurbishing - $110,000; (iii) field testing - $120,000; (iv) permitting and commercialization - $85,000; (v) labour - $100,000; and (vi) any balance leftover would go to working capital purposes.

All of the Common Shares and Warrants issued pursuant to the private placement are subject to a four-month hold period. The Warrants will not be listed on any stock exchange. Completion of this Offering remains subject to the final approval of the TSX Venture Exchange.

For further information, please contact:

Nexera Energy Inc. President, Shelby D. Beattie, by telephone at (403) 262-6000
Email: info@nexeraenergy.com
www.nexeraenergy.com.

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 now 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 the original press release on accesswire.com

FAQ

How much did Nexera Energy (EMBYF) raise in its recent private placement?

Nexera Energy (EMBYF) raised $775,000 by issuing 31,000,000 units at $0.025 per unit in its recent private placement.

What is the exercise price and expiry of the warrants issued by Nexera Energy (EMBYF)?

The warrants issued by Nexera Energy (EMBYF) have an exercise price of $0.10 and expire 24 months from the issuance date, subject to an acceleration clause.

How does Nexera Energy (EMBYF) plan to use the proceeds from the private placement?

Nexera Energy (EMBYF) plans to use the proceeds to expand its subsidiary PRI into cement services for well plugging and abandonment in South Texas, including equipment purchases, refurbishing, field testing, permitting, and labor costs.

What potential cost savings does Nexera Energy (EMBYF) expect from its new cement services branch?

Nexera Energy (EMBYF) expects to save up to $12,000 per well by using its own cement services for plugging and abandoning its wells instead of hiring external third parties.