Seeks to Raise Capital to Fund Acquisition and Expand Operations
Houston, TX - (NewMediaWire) - October 31, 2019 - Viking Energy Group,Inc. (OTCQB: VKIN) (“Viking” or the “Company”), an independent exploration and production company focused on the acquisition and development of oil and natural gas properties in the onshore Gulf Coast and Mid-Continent regions, today announced that it is seeking to raise up to $16.5 million (and up to $20 million with an over-allotment option) through an offering of 10.5% secured promissory notes(the “Notes”) and shares of Company common stock (the “Shares”), to be conducted pursuant to Rule 506(c) of the Securities Act of 1933, as amended (the “Offering”).
The Notes, which will mature in November 2020, will pay interest quarterly, in cash. In addition, for each $100,000 invested, noteholders will receive 60,000 shares of Viking common stock. Holders will also have the option, at any time prior to the earlier of the maturity date or 15 business days following the date that the Company’s common stock trades at an average of at least $0.65/share for 15 consecutive business days, to convert up to 50% of the principal amount of their Notes into shares of Company common stock at a conversion price equal to $0.35 per share. Holders will also have theoption to convert any portion of the principal amount of their Notes into Viking securities to be issued in any public offering (the “PO Securities”) initiated by the Company following the initial closing of the Offering, at a fifteen percent (15%) discount to the price of the PO Securities. The Notes will be backed by a security interest in and pledge of all the membership units of certain of the Company’s wholly-owned subsidiaries, which security interest in the pledged securities will be perfected by the filing of a UCC-1 Financing Statement by a designated collateral agent for the benefit pari passu of the noteholders.
The Notes and Shares will be offered in denominations of $100,000, with a minimum investment amount per investor of one Unit ($100,000), which may be waived by the Company in its sole discretion. The initial closing of the Offering will be conditional upon the Company completing the closing of a certain previously announced and pending acquisition of oil and gas assets, and it is contemplated that the closing of the acquisition and the initial closing of the Offering will occur concurrently. All investors in the Offering must be “accredited investors” as defined under Rule 501 of Regulation D and meet other suitability standards. Investors will be required to verify their accredited status in compliance with Rule 506(c).
“This offering will assist the company with closing another material acquisition. The integration of these strategic assets within our portfolio will further increase our reserves and cash-flow and advance our overall business plan as we continuously strive to leverage the expertise and relationships of our management and technical teams to drive operating efficiencies, exploit existing down-hole assets and to identify new drilling opportunities. Looking ahead, we are excited about our plans and prospects, and are committed to continuing to grow stakeholder value,” stated Viking CEO James Doris.
AboutViking Energy Group,Inc.
Viking is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties in North America. The company owns oil and gas leases in Texas, Louisiana, Mississippi and Kansas. Viking targets under-valued assets with realistic appreciation potential.
For additional information, please visit: https://www.vikingenergygroup.com.
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and any statements that are not historical facts contained in this press release are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the oil and gas industry, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ending December 31, 2018, and our Quarterly Reports on Form 10-Q for the quarters ending March 31, 2019, and June 30, 2019. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.
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