G2 Energy Corp (CSE:GTOO, OTC:GTGEF) and its G2 Energy TX1, Inc subsidiary have announced that it has resolved its differences with Cloudbreak Discover PLC, holder of a debenture in the principal amount of $2 million, regarding an alleged default of the debenture and has entered into a reinstatement, renewal and release agreement dated March 29, 2023.
The junior oil and gas producer said Cloudbreak has agreed to, among other things:
- Accept payment from the company and G2 TX1 in the sums set forth below;
- Reinstate the loan documents to the same extent as if no default had occurred;
- Withdrawal the foreclosure proceedings and;
- Renegotiate (with the assistance of a mediator) certain terms of the loan documents relating to working capital requirements and governing jurisdiction.
G2 Energy further stated that it and G2 TX1 shall, subject to receipt of any required regulatory approvals, pay to Cloudbreak:
- The sum of US$61,332.10 cash representing the past due fourth quarter end 2022 payment on the debenture of US$60,000 plus non-default interest in the amount of US$1,332.10 cash through February 22, 2023;
- Part of Cloudbreak's attorneys' fees in the amount of US$20,000 cash;
- The remaining part of Cloudbreak's attorney's fees in the amount of US$13,311.74 by way of transferring or issuing to Cloudbreak 907,000 G2 Energy common shares;
- The first quarter end 2012 payment on the debenture of US$60,000 plus a US$15,000 bonus by way of transferring or issuing to Cloudbreak 5,110,000 G2 Energy common shares;
- 4,769,000 company common shares transferred or issued to Cloudbreak in escrow by May 31, 2023, and;
- Second quarter 2023 payment on the debenture of $60,000 plus a US$15,000 by way of transferring or issuing 5,110,000 G2 Energy common shares.
“The company and G2 TX1 are pleased to have resolved these disagreements, and look forward to further building a mutually-beneficial business relationship with Cloudbreak,” G2 Energy CEO Slawek Smulewicz said in a statement.
G2 Energy is focused on acquiring and developing overlooked, low-risk, high-return opportunities in the oil and gas sector.
Contact Sean at sean@proactiveinvestors.com