Condor Announces Closing of US$5.9 Million Term Loan Facility Financing and Corresponding Warrant Private Placement

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CALGARY, Alberta, July 17, 2023 (GLOBE NEWSWIRE) -- Condor Energies Inc. (“Condor” or the “Company”) (TSX: CDR), is pleased to announce the closing on July 14, 2023 of a US$5.9 million term loan facility (the “Loan Facility”). The Loan Facility comprises separate loans from a group of arm’s length lenders (each a “Lender”) made pursuant to credit agreements between Condor and each Lender (the “Credit Agreements”) having an aggregate principal amount of US$5.9 million (CA$7.8 million). The Credit Agreements are on substantially the same terms, other than the timing for principal repayment whereby US$2,840,000 of principal will be repaid in eight quarterly installments commencing on October 14, 2024 and US$3,060,000 is due at maturity in 2026. The Loan Facility bears interest at 9.0% per annum, is unsecured, non-revolving and is available for working capital requirements and general corporate purposes.

Don Streu, President and CEO of Condor commented: “This funding effort assists us in advancing two of our energy transition initiatives: lithium brine production for power storage devices such as electric vehicle batteries and liquifying natural gas to generate lower carbon LNG which displaces higher emissions diesel fuel used by heavy equipment. In parallel, we continue with the final negotiations and approval of the definitive legal documents for a production redevelopment project to assume full operations of eight existing gas-condensate fields in Uzbekistan, along with two additional exploration blocks in the surrounding area. Implementing this financing strategy has also successfully minimized shareholder dilution, which has always been one of Condor’s core values. We are very pleased with the level of investor participation and very much look forward to executing our transformational business plan.”

In connection with the Loan Facility, Condor issued a total of 2,600,002 common share purchase warrants (consisting of Lender Warrants and Finder’s Warrants, each as defined herein and collectively the “Warrants”, and together with the Loan Facility, the “Offering”) at an exercise price of $0.48 per share. Each Lender received 1/3 of a Warrant for each dollar contributed to the Loan Facility (the “Lender Warrants”). The Company also entered into intermediary agreements with finders (each, a “Finder”) whereby each Finder received 1/6 of a Warrant for each dollar of the Loan Facility loaned by a Lender introduced by the Finder to the Company and accepted by the Company (the “Finder’s Warrants”).