logo-loader
viewDXI Energy

DXI Energy raises nearly C$960,000 from placing to help it transform into regional methanol producer

In September this year, the junior oiler unveiled its new strategic direction, which will see it transition to a regional producer of methanol

DXI Energy -
The firm issued over 31.9 million units at C$0.03 each, bringing in gross proceeds of C$959,832

DXI Energy Inc (TSE:DXI) (OTCMKTS:DXIEF) has closed an upsized brokered private placing, raising almost C$960,000 to convert its natural gas processing facilities at Woodrush in British Columbia into a methanol production facility and for general working capital. 

In September this year, the junior oiler unveiled its new strategic direction, which will see it transition to a regional producer of methanol.

Its own internal estimates had shown the potential to increase net income from operations by 900% as market demand for methanol, used in the oil and gas sector, in the region is high.

READ: DXI Energy, which plans to become regional methonol producer, reduces expenses in third quarter

The firm issued over 31.9 million units at C$0.03 each, bringing in gross proceeds of C$959,832.

Due to strong investor interest, DXI had received TSX approval to increase the size of the financing from C$750,000 (25 million units at C$0.03 each) to up to C$1.2 million (40 million units at C$0.03 a throw).

"This new capital will be applied to fund the initial methanol plant design and development costs, as well as general working capital for ongoing oil and natural gas production operations," said president and CEO of DXI Simon Raven.

"We are presently engaged in the process of securing project financing for the methanol plant, including discussion with methanol distributors in NE B.C. and NW Alberta and methanol plant EPC contractors in both the United States and Canada. We look forward to reporting to all stakeholders as certain project milestones are completed and additional progress is achieved."

In the placing, each unit comprised one share, and one share purchase warrant, entitling the holder to acquire a further share for C$0.04 each for one year from the date of issue.

Shares were unchanged at C$0.035 in Toronto.

Contact the author at [email protected]

Quick facts: DXI Energy

Price: 0.03 CAD

TSX:DXI
Market: TSX
Market Cap: $6.5 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of DXI Energy named herein, including the promotion by the Company of DXI Energy in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

DXI Energy makes a move to the lucrative world of Methanol

DXI Energy (TSE: DXI- OTCQB: DXIEF) President and CEO Simon Raven sat down with Steve Darling from Proactive Vancouver to talk about the change the company is making with their Woodrush project near Ft. St. John.  The company is planning a move to produce methanol.   Raven talked...

on 12/9/19

2 min read