NXT Energy Solutions Secures US$2.0 Million Convertible Debenture

NXT Energy Solutions Inc. (tsx:sfd) has confirmed the issuance of convertible debentures worth US$2 million to MCAPM LP. These debentures, approved conditionally by the Toronto Stock Exchange, carry a 10.0% annual interest rate and are due in two years. Investors can convert these into NXT common shares at US$0.25 per share, providing MCAPM access to up to 8 million shares.

MCAPM holds 19.1% of NXT's shares and could control up to 30.1% post-conversion of all debentures. As this exceeds the 20% threshold, shareholder approval will be sought at the annual meeting on July 15, 2024, for MCAPM to become a new "control person" under TSX rules.

Proceeds from this debenture will fund an SFD® survey in Southeast Asia and cover general administrative costs. NXT's CEO Bruce G. Wilcox emphasized that this funding is vital for completing the SFD® contract and initiating deployment negotiations in other regions.