Formation Minerals, Inc. (OTC:FOMI) Enters into Securities Purchase and Placement Agency Agreements

Formation Minerals, Inc., a Nevada corporation, recently disclosed in an 8-K filing with the U.S. Securities and Exchange Commission that it has entered into significant agreements aimed at bolstering its financial standing. The Company announced the completion of a Securities Purchase Agreement with GHS Investments LLC, a Nevada limited liability company, on January 10, 2025. This Purchase Agreement entails the acquisition of 95 shares of Formation Minerals’ Class B Convertible Preferred Stock at $1,000 per share, resulting in gross proceeds of up to $95,000.

In this private placement, Formation Minerals issued and sold the aforementioned 95 shares of Class B Preferred Stock to GHS for $95,000. Additionally, GHS received an additional 10 shares of the Class B Preferred Stock as an equity incentive, bringing the total shares to 105. The net proceeds from this transaction are slated to be utilized for the Company’s general working capital needs. The Purchase Agreement includes standard clauses covering events of defaults, representations, warranties, and closing conditions typical for such transactions.

Furthermore, Formation Minerals, Inc. is bound by the terms of the Purchase Agreement to submit a registration statement within 30 calendar days from the transaction’s closing date to register the resale of common stock issuable upon the conversion of the aforementioned preferred shares. The Company must also make reasonable efforts to have this registration statement declared effective by the Securities and Exchange Commission within 60 calendar days of filing. This registration statement needs to remain effective as long as GHS holds the stated securities.

Concurrently, on January 10, 2025, Formation Minerals engaged in a Placement Agency Agreement with Icon Capital Group LLC to facilitate the Financing process. The Placement Agent will act on a “reasonable best efforts” basis to support the Company in the Financing. As compensation for their services, the Company agreed to pay the Placement Agent a fee equivalent to 2.0% of the aggregate gross proceeds raised in the Financing. Of this, $1,800 was paid to the Placement Agent on the Initial Closing date.

Both the Purchase Agreement and Placement Agency Agreement are included as exhibits in the 8-K filing submitted to the SEC. It’s important to note that the information outlined in the filing is subject to the complete documentation of the agreements, which are available for reference in Exhibit 10.1 and 99.1, respectively. These agreements are foundational for the Company’s financial arrangements and further strategic development.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Formation Mnrls’s 8K filing here.

About Formation Mnrls

Formation Minerals Inc is an oil and gas company with a focus on the acquisition and management of oil and gas minerals and royalties. Formation Minerals Inc is based in Jacksboro, Texas.