Wedgemount Closes Second Tranche of Over-Subscribed Debenture Offering
Vancouver, BC – September 12, 2024 – Wedgemount Resources Corp. (CSE: WDGY)(OTCQB: WDGRF)
(“Wedgemount” or the “Company”), is pleased to announce that it has closed the second tranche of its
non-brokered private placement of convertible debenture units (a “Debenture Unit”) of the Company at
a price of $1,000 per Debenture Unit. The convertible debenture offering was over-subscribed. Under
the second tranche, a total of 745 Debenture Units were sold for gross proceeds of $745,000. In total
the Company has raised gross proceeds of $2,450,000 from the first and second tranche of Debenture
Units (the “Offering”).
Each Debenture Unit comprises $1,000 principal amount of unsecured redeemable convertible
debenture and 2,941 common share purchase warrants (each a “Warrant”). Each Warrant will entitle
the holder thereof to purchase one common share of Wedgemount (each a “Common Share”) at a price
of $0.30 until September 10, 2027.
The convertible debentures bear interest at a rate of 10% per annum, calculated and payable semi-
annually in arrears, with the first payment being February 25, 2025, and maturing 36 months from the
date of issuance. The principal amount of each convertible debenture will be convertible into Common
Shares of the Company at a price of $0.17 at the option of the holder of a convertible debenture at any
time prior to the close of business on September 10, 2027. On or after September 10, 2025, the
convertible debentures issued under this tranche may be redeemed in whole or in part from time to
time at the option of the Company at $1,050 plus accrued and unpaid interest.
Under the Offering, the Company paid finder’s fees consisting of a total of 19 Debenture Units, equal to
5% of the number of Debenture Units sold under the tranche to investors identified by respective
finders.
The convertible debentures are unsecured obligations of the Company and are subordinated in right of
payment of principal and interest to all secured debt, and to all existing and future senior indebtedness
of the Company, and senior to any of the Company’s future debt that is expressly subordinated to the
convertible debentures.
One insider of the Company participated in the second tranche of the Offering, acquiring 5 Debenture
Units. As such, the closing of the Offering may constitute a related party transaction under Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), but is
otherwise exempt from the formal valuation and minority approval requirements of MI 61-101 by virtue
Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of any securities issued to,
nor the consideration paid by such person, exceeds 25% of the Company’s market capitalization.
The net proceeds received by the Company from the Offering have been or will be used, as applicable,
for the acquisition of the Huggy assets described in the Company’s July 29, 2024 news release,
continued optimization of the Company’s operated oil and gas assets, and for general working capital.
The securities issued under the second tranche of the Offering are subject to a statutory four month and
one day hold period, which expires on January 11, 2025.
Engagement of Financial Advisor
In respect of the Offering, the Company entered into a Financial Advisory Agreement with Canaccord
Genuity dated September 6, 2024. Pursuant to the Financial Advisory Agreement, the Company issued
100 Debenture Units to Canaccord.Canaccord Genuity is an independent, global, full-service investment bank, and has significant
knowledge and exposure to the natural resource sector, which will be instrumental in Wedgemount’s
efforts to grow a stable and self-sustaining up-stream oil and gas business.
Marketing Arrangements
Wedgemount has entered into an agreement with Outside the Box Capital Inc. to provide marketing
services to the Company including but not limited to planning content creation and assisting in
enhancing awareness of the Company. The engagement runs from September 3, 2024, through January
3, 2025 at a cost to the Company of $75,000.
Wedgemount has also entered into an agreement with Proactive Investors North America Inc. to assist
the Company in enhancing its online presence with the global investment community, as part of its
strategy to increase general market awareness of the Company and its Texas based oil and gas
operations. The engagement runs from August 21, 2024, to August 20, 2025 at a cost to the Company of
$45,000.
Both marketing arrangements will be paid from the proceeds of the Offering.
About Wedgemount Resources Corp.
Wedgemount Resources is a junior oil & gas company focused on maximizing shareholder value through
the acquisition, development and exploitation of natural resource projects in the southern USA.
On behalf of the Board of Directors,
WEDGEMOUNT RESOURCES CORP.
Mark Vanry, President and CEO
For more information, please contact the Company at:
Telephone: (604) 343-4743
info@wedgemountresources.com
www.wedgemountresources.com
Reader Advisory
This news release may contain statements which constitute “forward-looking information”, including
statements regarding the plans, intentions, beliefs and current expectations of the Company, its
directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar
expressions, as they relate to the Company, or its management, are intended to identify such forward-
looking statements. Investors are cautioned that any such forward-looking statements are not
guarantees of future business activities and involve risks and uncertainties, and that the Company’s
future business activities may differ materially from those in the forward-looking statements as a result
of various factors, including, but not limited to, availability of funds, personnel and other resources
necessary to conduct exploration or development programs, successes of the Company’s exploration
efforts, availability of capital and financing and general economic, market or business conditions. There
can be no assurances that such information will prove accurate and, therefore, readers are advised to
rely on their own evaluation of such uncertainties. The Company does not assume any obligation to
update any forward-looking information except as required under the applicable securities laws.
Neither the Canadian Securities Exchange nor the Canadian Investment Regulatory Organization of
Canada accepts responsibility for the adequacy or accuracy of this release.