Southern Energy Corp. Secures $23.5 Million Financing

Southern Energy Corp., a natural gas producer in Mississippi, announced US$22 million in net proceeds from a strategic financing and royalty sale. This includes senior secured convertible debentures and new common shares, with an 8.8235% original issue discount. The transaction aims to restructure the company's capital by retiring high-cost debt and extending maturities, enhancing financial flexibility for 2026 development plans.

The financing combines non-dilutive capital tied to production performance and enables debt refinancing at lower interest rates, leveraging the company's Gulf Coast assets. The proceeds will retire existing credit facilities and fund development, including completing wells in Gwinville.

Key terms include a 7% annual interest on debentures, maturing in 2028, conversion to shares at US$0.073 each, and GORR on revenue from developed assets. The transaction, pending regulatory approvals, is set to close by February 12, 2026.