Bridging Finance Inc. Acquires Control of Common Shares of Cuda Oil and Gas Inc.

Toronto, Ontario–(Newsfile Corp. – February 23, 2021) – Bridging Finance Inc. (“BFI“) reported today that it has acquired control or direction over 9,100,000 common shares (the “Shares“) of Cuda Oil and Gas Inc. (the “Issuer“). The Shares were issued to certain funds controlled by BFI in consideration of an amendment to certain financing arrangements between the Issuer and BFI, pursuant to the terms and conditions of a Fifth Amending Agreement made as of January 20, 2021 among Cuda Energy Inc., as borrower, the Issuer, Cuda Energy LLC and Junex Inc., as guarantors, and BFI, as agent (the “Amending Agreement“). The Shares represent, in aggregate, approximately 19.98% of the issued and outstanding common shares of the Issuer (based on 45,536,220 common shares of the Issuer being issued and outstanding following the issuance of the Shares).

Specifically, the Shares were issued as follows:

• Bridging Income Fund LP – 5,942,300 Shares representing approximately 13.05% of the issued and outstanding common shares of the Issuer;
• Bridging Mid-Market Debt Fund LP – 2,924,740 Shares representing approximately 6.42% of the issued and outstanding common shares of the Issuer; and
• Bridging Private Debt Lending Master Fund I, LP – 232,960 Shares representing approximately 0.52% of the issued and outstanding common shares of the Issuer.

In connection with the Amending Agreement, certain warrants to acquire common shares of the Issuer held by funds controlled by BFI were cancelled and terminated. Other than in respect of the Shares, BFI does not currently hold ownership, or control or direction over, any other securities of the Issuer.

The Shares issued were issued at a deemed price of $0.065 per share (being the closing price of the common shares of the Issuer on the TSX Venture Exchange on date prior to the Amending Agreement). The aggregate issue price of the Shares was $591,500.

The Shares were acquired and are being held for investment purposes. BFI (or funds controlled by it) may, from time to time, in the future increase or decrease its ownership, or control or direction over, securities of the Issuer, through market transactions, private agreements or otherwise, the whole depending on market conditions, the business and prospects of the Issuer and other relevant factors.

A copy of the early warning report filed by BFI in connection with the issuance of the Shares pursuant to the Amending Agreement is available under the Issuer’s profile on SEDAR (www.sedar.com) or is available by contacting Andrew Mushore, Chief Compliance Officer and Chief Operating Officer of BFI, at 416-362-6283.

The head office of BFI is located at 77 King Street West Suite 2925, Toronto, Ontario M5K 1K7.

About Bridging Finance Inc.

Bridging Finance Inc. was founded in 2012 as a privately held Canadian company providing middle-market Canadian companies with alternative financing options to those offered by traditional lenders. The funds deployed by Bridging are used to address short-term needs, including restructuring existing debt, providing working capital for growth, as well as supporting inventory purchases, capital expenditures and acquisitions/buyouts. Bridging attracts borrowers who cannot access capital from traditional financing sources due to industry factors, complexity, size, or other unique challenges companies might face. Facilities offered are covenant-lite, quick, flexible, and creative – generally based on the value of the assets of the company and the borrowing needs. A large investment pool is available for transactions of up to $50,000,000.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/75228