NEXERA ENERGY SIGNS LETTER OF INTENT WITH LENDER TO CONVERT ALL OUTSTANDING LOANS TO ROYALTY STRUCTURE
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.”
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.
For further information, please contact:
Nexera Energy Inc. President, Shelby D. Beattie, (403) 262-6000, firstname.lastname@example.org, www.nexeraenergy.com.
Investor Cubed Inc. CEO, Neil Simon, (647) 258-3310, email@example.com, www.investor3.ca.