Cardinal Energy Ltd. announced a private placement of subordinated second lien secured notes for gross proceeds of CAD 12,500,000 on June 1, 2021. The notes will bear interest at 10% per annum, all interest will accrue semi-annually and be added to the principal amount outstanding and will be payable on maturity and will be due after three-year term. As part of the transaction, the company has agreed to issue one common share purchase warrant for each CAD 5.00 principal amount of notes. Each warrant will entitle the holder to acquire one common share of Cardinal at an exercise price equal to the deemed price of the common shares being issued pursuant to the acquisition for a period of 36 months commencing six months from issue date. The note Financing is expected to be fully funded by insiders of the Company. The closing of the transaction is expected to occur on or about the closing date of the acquisition and is subject to the approval of the TSX Venture Exchange and certain other funding conditions. The transaction included participation from Scott Ratushny, John Brussa for CAD 700,000 each notes and 140,000 warrants each, David D. Johnson for CAD 600,000 notes and 120,000 warrants, John Gordon for CAD 100,000 notes and 20,000 warrants, Shawn Van Spankeren for CAD 100,000 notes and 20,000 warrants, Connie Shevkenek for CAD 300,000 notes and 60,000 warrant and N. Murray Edward for CAD 10,000,000 for notes and 2,000,000 warrants. The transaction was approved by board of directors of the company.