Daybreak Oil and Gas, Inc. announced that it has entered into subscription agreement for private placement of of 125,000,000 common shares at a price of $0.02 per share for gross proceeds of $2,500,000 on May 5, 2022. The transaction will include participation from Portillion Capital Ltd. The transaction is expected to close after the company's special meeting of shareholders on May 20, 2022. The company has agreed to pay the investor an incentive fee equal to 20% of the proceeds payable 17.5% in cash and 2.5% in additional common shares, equivalent to 3,125,000 common shares and an equity exchange fee equal to 3% of the proceeds.

Further if the transaction is not closed within 24 months, the company has agreed to pay a termination fee of 20% of the proceeds.