BULLETIN V2026-0757
SOUTHERN ENERGY CORP. ("SOU")
BULLETIN TYPE: Private Placement-Non-Brokered, Property-Asset or Share Disposition Agreement
BULLETIN DATE: February 27, 2026
TSX Venture Tier 2 Company
Non-Brokered Equity Private Placement:
Financing Type: Non-Brokered Private Placement
Gross Proceeds: US$1,500,000.00
Equity Offering: 30,000,000 common shares of the Company ("Shares")
Equity Offering Price: US$0.05 (CA$0.07) per Share
Commissions in Securities: N/A
Non-Brokered Convertible Debenture Private Placement:
Gross Proceeds: US$17,000,000.00 (US$15,500,000.00 of net proceeds ("Purchase Price"))
Convertible Debenture 17,000 US$1,000 face value of secured convertible debenture units ("Debentures") issued with a 8.8235% original issue discount at an effective price of US$911.76 per Debenture
Conversion Price: The Purchase Price of the Debentures are convertible into Shares at a conversion price of US$0.073 (CA$0.10) per Share
Interest rate: 7% per annum
Commissions in Securities: N/A
Property-Asset or Share Disposition Agreement ("Disposition"):
TSX Venture Exchange has accepted for filing documentation the Gross Overriding Royalty Agreement dated February 12, 2026 ("Agreement"), between the Company and an arm's length party ("Purchaser"). Pursuant to the terms of Agreement, the Company has granted the Purchaser a 6% gross overriding royalty ("GORR") in revenue generated from all existing and future developed production of petroleum substances on the Company's lands as of the closing date in perpetuity. The Company will pay the Purchaser cash amounts payable from the GORR on a monthly basis. As consideration for the transaction, the Purchaser has paid the Company a cash amount of US$5,000,000.
Disclosure: For full disclosure of the Equity Private Placement, the Convertible Debenture Private Placement, and the Disposition, refer to the Company's news releases dated February 9, 2026 and February 12, 2026.
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