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CALGARY - Touchstone Exploration Inc. (TSX:TXP) has closed a $12.5 million secured convertible debenture with Canadian private investor and existing shareholder JJR Wood Holdings Inc., the company announced Wednesday.
The three-year debenture carries a 5% interest rate and includes 6.25 million warrants. The debenture is convertible into common shares at $0.21813 per share, representing the U.S. dollar equivalent of C$0.30 based on the Bank of Canada exchange rate prior to issuance. Each warrant is exercisable at C$0.40 per share for two years.
The financing partially fulfills Touchstone’s equity raise requirements under its loan agreement with Republic Bank Limited. The company must raise an additional $7.3 million in equity before December 31, 2025, to remain compliant with loan terms.
"This financing will provide the capital necessary to immediately restart drilling operations at Cascadura and subsequently bring new production online at the Cascadura facility," said Paul R. Baay, President and Chief Executive Officer of Touchstone.
Proceeds will fund the immediate commencement of drilling the Cascadura-4ST2 development well, complete and tie-in the Cascadura-4ST2 and Cascadura-5 wells, and reduce outstanding accounts payable.
The debenture is secured by a perfected security interest over all present and after-acquired personal property of Touchstone Exploration Inc., including an Alberta law general security agreement and a Barbados law charge over shares of the company’s subsidiary.
The company noted that £10,324,500 of a previously announced £15,375,000 private placement from May 8, 2025, remains outstanding, with uncertainty regarding its receipt. Touchstone completed this new offering to secure its near-term capital requirements.
Neither the debenture nor the warrants will be listed on any exchange, though common shares issuable upon conversion or exercise will be listed on the TSX and admitted to trading on the AIM market of the London Stock Exchange.
The information is based on a company press release statement.
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