Marksmen Energy Inc. (“
Marksmen” or the
“
Company”) announces that it has completed the
first closing of its previously announced non-brokered private
placement of units (the “
Units”) of Marksmen (the
“
Offering”). The Company issued 2,490,000 Units at
a price of $0.05 per Unit for aggregate gross proceeds of $124,500.
Each Unit is comprised of one (1) common share (“
Common
Share”) and one (1) share purchase warrant
(“
Warrant”) of Marksmen. Each whole Warrant
entitles the holder thereof to purchase one Common Share at a price
of $0.10 per share expiring two (2) years from the date of
issuance, subject to acceleration provisions (see news release
dated July 12, 2023).
Pursuant to the first closing of the Offering,
Marksmen paid cash commissions to a qualified non-related party of
$2,000 and issued 40,000 broker warrants, each broker warrant
entitling the holder to acquire one Common Share at a price of
$0.05 per share for a period of one (1) year from the date of
issuance.
Marksmen intends to use the net proceeds of
$122,500 from the first closing of the Offering to complete an
upper zone in a well in Pickaway County, Ohio.
Completion of the Offering is subject to
regulatory approval including, but not limited to, the approval of
The TSX Venture Exchange Inc. (“TSXV”). The
securities issued are subject to a four month hold period from the
date of issuance.
The Company expects to complete a second closing
on or before September 29, 2023.
Related Party Participation in the Private
Placement
Insiders subscribed for an aggregate of 890,000
Units in the first closing of the Offering for a total of 36%. As
insiders of Marksmen participated in this first closing of the
Offering, it is deemed to be a “related party transaction” as
defined under Multilateral Instrument 61-101-Protection of Minority
Security Holders in Special Transactions (“MI
61-101”).
Neither the Company, nor to the knowledge of the
Company after reasonable inquiry, a related party, has knowledge of
any material information concerning the Company or its securities
that has not been generally disclosed.
The Offering is exempt from the formal valuation
and minority shareholder approval requirements of MI 61-101
(pursuant to subsections 5.5(c) and 5.7(1)(b)) as it was a
distribution of securities for cash and neither the fair market
value of the Units distributed to, nor the consideration received
from, interested parties exceeded $2,500,000.
The Company did not file a material change
report more than 21 days before the expected closing of the
Offering because the details of the participation therein by
related parties of the Company were not settled until shortly prior
to the first closing of the Offering and the Company wished to
close on an expedited basis for business reasons.
Early Warning Report
In connection with the first closing of the
Offering, the Company issued 300,000 Units to Mr. Archie Nesbitt,
indirectly, for total consideration of $15,000.
As at the date of Mr. Nesbitt's previously filed
early warning report of November 25, 2019, Mr. Nesbitt held,
directly and indirectly, 10,832,697 Common Shares representing
9.67% of the issued and outstanding Common Shares, 1,198,327 vested
stock options ("Options") and 1,925,833 Warrants.
Assuming the exercise of the Warrants and Options, Mr. Nesbitt
would have had control or direction over 14,447,530 Common Shares,
representing 12.51% of the issued and outstanding Common Shares as
of November 22, 2019. Since that time, the Company has increased
the number of Common Shares issued and outstanding pursuant to the
completion of private placements and the exercise by shareholders
of convertible securities. The increase to the Company's issued and
outstanding Common Shares and the acquisition of the Units resulted
in a decrease to Mr. Nesbitt's diluted and undiluted holdings of
2.88% and 2.72%, respectively, which triggered the requirement to
file an early warning report.
Immediately after the first closing of the
Offering, Mr. Nesbitt held, directly and indirectly, 13,210,497
Common Shares, representing 6.95% of the issued and outstanding
Common Shares, 2,705,833 Warrants and 2,925,000 Options. Assuming
the exercise of the Warrants and Options, Mr. Nesbitt will have
control or direction over 18,841,330 Common Shares, representing
9.63% of the issued and outstanding Common Shares.
Mr. Nesbitt's acquisition of the Units was made
for investment purposes and Mr. Nesbitt intends to increase or
decrease his holdings in the Company depending on market conditions
and as circumstances warrant.
A report respecting this acquisition has been
filed with the applicable securities commissions using the Canadian
System for Electronic Document Analysis and Retrieval (SEDAR+) and
is available for viewing on the Company's profile at
www.sedarplus.ca.
For additional information regarding this news
release please contact Archie Nesbitt, Director, and CEO of the
Company at (403) 265-7270 or e-mail
ajnesbitt@marksmenenergy.com.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
This news release may contain certain
forward-looking information and statements, including without
limitation, the second closing of the private placement, statements
pertaining to the use of proceeds, the Company's ability to obtain
necessary approvals from the TSX Venture Exchange and Mr. Nesbitt’s
intentions regarding his holdings of securities of the Company. All
statements included herein, other than statements of historical
fact, are forward-looking information and such information involves
various risks and uncertainties. There can be no assurance that
such information will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such information. A description of assumptions used to develop such
forward-looking information and a description of risk factors that
may cause actual results to differ materially from forward-looking
information can be found in Marksmen’s disclosure documents on the
SEDAR+ website at www.sedarplus.ca. Marksmen does not undertake to
update any forward-looking information except in accordance with
applicable securities laws.
Marksmen Energy (TSXV:MAH)
Historical Stock Chart
From Nov 2024 to Dec 2024
Marksmen Energy (TSXV:MAH)
Historical Stock Chart
From Dec 2023 to Dec 2024