Terrace Energy Corp. (TZR.V) has entered into agreements with LG Energy North America LLC (LGENA) whereby LGENA will subscribe for 20,000,000 common shares of the company at a price of $1.50 per share for aggregate gross proceeds of $30 million and will invest an additional $60 million into a special purpose entity to provide supplemental project financing for new exploration and development opportunities in the future.
The company has also agreed to purchase a 10% interest in the SPV, valued at $6 million from LG for 4,000,000 common shares of the company at a deemed value of $1.50 each.
Dan Carriere, the company's chairman, commented: "We are extremely pleased with the opportunity to work together with LG to build Terrace Energy into a significant company. LG's decision to make their first foray into the acquisition and development of North American oil & gas interests through Terrace Energy clearly demonstrates the confidence they have placed in our projects, management and technical teams."
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
