Permex Petroleum Corporation Secures $2 Million Private Placement to Bolster Working Capital
Vancouver, British Columbia – July 4, 2025 – Permex Petroleum Corporation (CSE: OIL) (FSE: 75P) is making waves in the energy sector with a significant private placement, raising US$2,000,000 in gross proceeds. This strategic move signals a renewed focus on operational strength and future growth for the junior oil and gas company.
The financing will see Permex Petroleum issue 2,000 convertible debenture units to a single, arm’s-length subscriber. Each unit is structured to include a US$1,000 convertible debenture and 393 common share purchase warrants. These warrants offer an attractive five-year window for acquisition of Permex Petroleum’s common shares at an exercise price of US$2.54 per share, a price reflecting current market discussions. Permex Petroleum has confirmed receiving confidential price protection for these key figures from the Canadian Securities Exchange (CSE), ensuring a stable foundation for this capital infusion.
The convertible debentures are set to mature in one year, carrying a straightforward 10% annual interest rate. This interest can be settled in cash or common shares, at the discretion of Permex Petroleum, contingent on CSE approval and a conversion price of US$2.54. This shareholder-friendly conversion mechanism offers flexibility and aligns with potential upside in the company’s stock performance.
Holders of the debentures possess the option to convert the principal and accrued interest into common shares at any point during the debenture’s term, utilizing the established conversion price. Furthermore, a unique automatic conversion clause is triggered should Permex Petroleum successfully complete a future equity financing exceeding US$7,500,000, effectively streamlining capital structure as developmental milestones are achieved. Any conversion impacting dilution thresholds will adhere to stringent CSE policies, including potential shareholder ratification.
Proceeds from this private placement are earmarked for general working capital, a crucial element for sustaining day-to-day operations and pursuing strategic initiatives. Permex Petroleum has confirmed no finder’s fees will be associated with this transaction.
The company has also addressed recent market activity, stating there has been no undisclosed material information and no apparent reason for any recent volatility in its trading price. Permex Petroleum is on track to close this private placement following the requisite five-day notice period mandated by CSE policy.
The securities offered are exclusively available to accredited investors under U.S. securities law or to individuals located outside the United States who do not meet the definition of a “U.S. person.” All issued securities will be subject to a four-month hold period, in addition to any other restrictions imposed by U.S. or international securities regulations.
About Permex Petroleum Corporation
Permex Petroleum (CSE: OIL) (FSE: 75P) commands a distinctive position within the junior oil and gas landscape, boasting operational assets strategically situated across the Permian Basin of West Texas and the Delaware Sub-Basin of New Mexico. The company’s core strategy emphasizes disciplined, low-cost development of “Held by Production” assets for sustainable expansion, while concurrently advancing its “Blue-Sky” projects for significant scale growth. Operating through its fully owned subsidiary, Permex Petroleum US Corporation, the company holds licenses and operates across private, state, and federal lands in both Texas and New Mexico. For more insights, visit www.permexpetroleum.com.
Cautionary Disclaimer Statement:
Neither the Canadian Securities Exchange nor its Regulation Services Provider assumes any responsibility for the accuracy or completeness of this announcement.
Forward-Looking Statements
This press release may contain forward-looking information and statements, as defined by applicable securities laws. These statements, often identified by terms like “may,” “will,” “expect,” “anticipate,” “believe,” and “potential,” are inherently subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations. This includes the successful completion of the private placement and the utilization of its proceeds. Management’s estimates and assumptions underpin these forward-looking statements, including the anticipation of the offering’s completion and the planned deployment of capital. Factors such as the inability to complete the offering, unexpected market volatility, or broader financial market conditions could significantly impact the company’s performance. Permex Petroleum cautions readers against undue reliance on these statements and does not undertake to update any forward-looking information except as required by law.
To view the original press release, please visit https://www.newsfilecorp.com/release/257819
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