DEEP Earth Energy Production Corp. (DEEP), a Canadian geothermal company, has secured Canadian dollar 4.5 million private placement offer. This equates to around USD 3.6 million. The company received subscriptions for 4,948,100 units of the company at CAD$ 0.85 per unit, for a total of CAD$ 4,205,885 in proceeds to the corporation.
Each unit is made up of one “Class A” common voting share of the corporation and one warrant that is being issued for no additional consideration. Each warrant enables the holder to acquire an extra common share by paying the corporation the exercise price of CAD$1 per warrant at any time prior to the warrant’s expiration date, which is 36 months from the day the warrant is issued.
The corporation also obtained subscriptions for 310,000 shares issued on a flow-through basis under the Income Tax Act (Canada) at CAD$1 per share, for a total profit of CAD$310,000. DEEP has received a strategic investment from PHX Energy Services Corp. PHX Energy has made a $3,000,500 investment in DEEP, with a provision for an additional $3,500,000 in equity if warrants held by PHX Energy are exercised. DEEP’s plan to install up to 160 MW of geothermal power and direct heating infrastructure in southeast Saskatchewan which will generate a new and green industry worth $1 billion. DEEP is working to develop geothermal resources in order to address rising energy demands with clean, sustainable energy. In southern Saskatchewan, the business is developing its first 20-32 MW geothermal power facility, which will generate emissions-free baseload power. The first facility is expected to be fully operational in early 2024.