Oil and gas company Nextraction Energy (CVE:NE) reported on Monday that it has entered into a loan agreement with exempt market dealer Anthem Capital Corp for a $1.5 million bridge loan to help fund a second well being drilled at the Provost Field, in Alberta.
A $15,000 fee was paid to Anthem. The loan, which has an interest of 20% a year, has a three month term and can be extended for another month.
Director and shareholder of Nextraction, Eric Carlson, also owns a controlling stake in Anthem Capital making this loan a "related party" transaction.
Carlson obtained the prior consent of Nextraction’s ethics officer to the placement of the Loan with the company, based on his controlling stake in Anthem.
The board approved the loan on Sept. 28, however, Eric Carlson abstained from voting due to his owning interest in Anthem Capital. The deal should wrap up in less than 21 days.
Nextraction is a Canadian Junior oil and natural gas company that explores and develops resources in North America. The company targets projects along trends with known reserves that provide low risk, high return development opportunities in conventional and unconventional resource projects.
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