Questerre finalizes PX energy acquisition, forms Brazil joint venture

Questerre Energy Corporation has completed its acquisition of Parana Xisto SA (PX Energy) and simultaneously entered a 50/50 joint venture with Nice Capital Holdings Ltda, a member of Brazil's Nimofast Group. The joint venture, which awaits CADE approval and a definitive agreement, aims to own and develop PX Energy, an oil shale production and refining company.

The partners have committed an initial liquidity of up to an aggregate $50 million, to be shared equally, prioritizing third-party financing. Questerre anticipates funding its share through existing financial resources. In conjunction, Ramon Reis and William Con Steers are joining Questerre's board, receiving 1,500,000 and 500,000 stock options respectively. Nimofast also receives warrants for 40 million common shares.

Questerre is also advancing plans to spin out its Quebec-based assets, with existing shareholders expected to receive a new financial instrument representing their interest. This Quebec Spinout is intended to precede any share issuance related to the PX Energy acquisition or warrants. The bondholders of Forbes Brazil, which Questerre will now directly acquire 100% of, have approved the acquisition and bond term amendments.