Skip to main content
Client Work

CGX Energy Inc. announces closing of C$73.6 million rights offering

Reading Time 1 minute read Subscribe



CGX Energy Inc.

CGX Energy Inc. ("CGX") completed a rights offering with gross proceeds of C$73,600,000 (the "Offering"). Pursuant to the Offering, CGX offered holders of its outstanding common shares ("Common Shares") as of close of business on October 1, 2021 the ability to subscribe for an aggregate of 45,151,338 Common Shares. Each holder of a Common Share was offered 0.157 of a right for each Common Share held (the "Right") and each whole Right entitled the holder to subscribe for one Common Share for a subscription price of C$1.63.

In addition, Frontera Energy Corporation ("Frontera"), an insider and CGX's largest shareholder, acquired an aggregate of 45,083,314 Common Shares pursuant to the exercise of its Rights and its standby commitment under the Offering. In consideration of the standby commitment, Frontera received 5-year warrants to purchase up to 1,173,774 Common Shares at an exercise price equal to US $1.51 per Common Share.

Fasken advised CGX with a team comprised of Garth Foster, Markus Liik and Fatima Husnain.


  • Ontario



    Receive email updates from our team