Nexera Announces Update Re: Private Placement of Units

Rhea-AI Summary

Nexera Energy Inc. (TSXV:NGY)(OTC PINK:EMBYF) has announced an increase in its previously reported non-brokered private placement. The revised offering now proposes up to $775,000, with a maximum of 31,000,000 units at $0.025 per unit. Each unit includes one common share and one warrant, exercisable at $0.10 for 24 months.

The net 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 additional revenue by servicing other operators. The company plans to allocate funds for equipment purchases, refurbishing, field testing, permitting, and labor.

The offering is expected to close by August 16, 2024, subject to TSX Venture Exchange approval.

Positive

• Increased private placement offering to $775,000, potentially providing more capital for operations
• Expansion into cement services for well plugging and abandonment, creating a new revenue stream
• Potential cost savings of up to $12,000 per well for plugging and abandoning own wells
• Diversification of business model through oil and gas services opportunity

Negative

• Potential dilution of existing shareholders due to issuance of up to 31,000,000 new common shares
• Execution risk associated with entering a new line of business in cement services
• Dependence on TSX Venture Exchange approval for the completion of the offering

CALGARY, AB, AND SAN ANTONIO, TX / ACCESSWIRE / July 31, 2024 / Nexera Energy Inc. (TSXV:NGY)(OTC PINK:EMBYF) (the "Corporation", the "Company" or "Nexera") today reported that the Corporation is increasing the maximum offering amount of it's previously announced non-brokered private placement (see the Corporation's press release dated June 19, 2024). Pursuant to the revised offering, the Corporation is now proposing to offer of up to $775,000 (up to maximum of 31,000,000 common shares ("Common Shares") of the Corporation). The Common Shares are to be issued under a unit offering whereby up to a maximum of 31,000,000 units ("Units") at a subscription price of $0.025 per Unit are to be offered. Each Unit shall consist 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.

Pursuant to an extension from the TSX Venture Exchange, the Corporation anticipates closing the Offering on or before August 16, 2024.

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

What is the new maximum offering amount for Nexera Energy's private placement?

Nexera Energy Inc. (EMBYF) has increased the maximum offering amount to $775,000, up from its previously announced non-brokered private placement.

How many units is Nexera Energy offering in its revised private placement?

Nexera Energy Inc. (EMBYF) is now offering up to a maximum of 31,000,000 units at a subscription price of $0.025 per unit.

What does each unit in Nexera Energy's private placement consist of?

Each unit in Nexera Energy's (EMBYF) private placement consists of one common share and one share purchase warrant, with each full warrant allowing the purchase of an additional common share at $0.10 for 24 months.

How does Nexera Energy plan to use the proceeds from its private placement?

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

When is the expected closing date for Nexera Energy's private placement?

Nexera Energy Inc. (EMBYF) anticipates closing the private placement offering on or before August 16, 2024, subject to final approval from the TSX Venture Exchange.