[ad_1]
Climate tech firm Zefiro Methane Corp. is advancing its plan for an initial public offering (IPO) in Canada.
The company has obtained a receipt for its final prospectus filed with the securities regulatory authorities in the provinces of British Columbia, Alberta, and Ontario for an initial public offering of two million common shares at a price of $1.09 (CAD 1.50) per share for gross proceeds of $2.17 million (CAD 3 million).
Zefiro describes itself as a climate technology company offering a comprehensive tool kit to help the upstream energy sector move towards Net Zero by working with public agencies and private entities. The company deploys crews to decommission orphaned oil and gas wells nationwide and generate carbon offsets, it said in a news release.
The company outlined that it aims to solve the multi-billion dollar methane abandoned/orphaned oil and gas emissions problem and management with a business model that involves methane testing, quantification, and monitoring; well decommissioning and methane abatement; and carbon offset generation.
Zefiro has granted the underwriters an over-allotment option to sell up to 300,000 additional common shares of the company, representing 15 percent of the aggregate number of shares, for additional gross proceeds of $326,000 (CAD 450,000) if exercised in full.
The closing of the offering is expected to occur on or about April 23 and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals, Zefiro said.
The company added that it has received conditional approval to list the shares, including shares issued and sold in the IPO, on the Cboe Canada Inc. Exchange. The listing remains subject to Zefiro fulfilling all of the listing requirements of Cboe Canada.
Zefiro outlined that it plans to use the net proceeds of the IPO for equipment purchases, operation team scaling, carbon credit pre-sale fees, integration of its subsidiary Plants and Goodwin, Inc., professional fees, management overhead, repayment of outstanding notes, marketing and investor relations, and working capital.
Meanwhile, Zefiro unit Plants & Goodwin, a Pennsylvania-based oil and gas well plugging operation, helped complete a well plugging project within the Cuyahoga Valley National Park near Akron, Ohio. The subsidiary was subcontracted by North Wind Site Services, LLC.
“Whether an unplugged oil and gas well is located next to a school, business, or just off a trail of one of America’s most beautiful national parks, the potential environmental risk it poses cannot be allowed to fester,” Zefiro Founder and CEO Talal Debs said in a statement. “Our team is proud to have worked side-by-side with our federal government and industry colleagues to complete this important project, and we look forward to helping more communities throughout the country confront this legacy public health issue”.
To contact the author, email rocky.teodoro@rigzone.com
[ad_2]
Source link