08:35 AM EDT, 06/03/2024 (MT Newswires) -- NXT Energy Solutions ( NSFDF ) on Monday said it is raising US$2 million in a fully subscribed offering of convertible debentures. The Toronto Stock Exchange has provided conditional approval of the private placement, it noted.

The oilfield-services company said the two-year debentures, which carry a 10% interest rate and can be converted into shares priced at $0.25, will be acquired by MCAPM LP, which already holds a 19.1% stake in the company. Any conversion of the securities will require approval by shareholders.

"MCAPM's conversion rights....entitle it to own more than 20% of the issued and outstanding common shares and become a new control person under the rules of the TSX, which requires disinterested shareholder approval for the creation of a new control person," the company said.

NXT said the funds will be used to complete a contract to use its remote oil-reservoir detection technology in southeast Asia and general and administrative costs.

The company also said interim chief executive Bruce Wilcox has been confirmed in the role, removing the interim tag, while lead director Charles Selby will become chair of its board.

NXT Energy shares closed down $0.01 to $0.095 Friday on the TSX, just above their 52-week low of $0.09.