CALGARY, Alberta, December 22, 2022 (GLOBE NEWSWIRE) — NXT Energy Solutions Inc. (“NXT” or the “Company”) SFDNSFDF is pleased to announce that it has received conditional approval from the Toronto Stock Exchange (the “TSX”) to offer a private placement in multiple tranches (the “Private Placement”), under which the subscribers may purchase up to 11,900,770 common shares of the Company at a price of $0.195 per share for total gross proceeds of approximately $2,320,650. As of December 22, 2022, an amount of $1,789,765 or 9,178,282 common shares had been subscribed by participants in the private placement. The Company intends to close the remaining $530,885 of the private placement by January 27, 2023. Common shares issued as a result of the private placement will be subject to a hold period of four months plus one day from the date of issuance.

New insider

Mr. Michael P. Mork and MCAPM, LP (collectively “Mork Capital”) have agreed to purchase 8,750,000 common shares or $1,706,250 of the private placement, whereby Mork Capital will own approximately 18.72% of the Company’s outstanding common shares. Two members of the Company’s board of directors are participating in the private placement for a total of $83,515.

Completion of the first tranche of the private placement

As of December 22, 2022, the Company has received approximately $223,915 in connection with the issuance of 1,148,282 common shares in the first tranche of the private placement. The remaining $1,565,850 of the Mork Capital investment is currently held in escrow and will be transferred to the Company upon TSX clearance of Mork Capital’s Personal Information Form in January 2023.

The proceeds from the private placement will be used to defray general and administrative expenses, which include business development and marketing activities required to convert the existing pipeline of opportunities into firm contracts.

Eugene Woychyshyn, Vice President of…