Magnum Announces Non-Brokered Private Placement
30 May 2014 - 5:01AM
Marketwired
Magnum Announces Non-Brokered Private Placement
Existing Shareholders to be offered Participation via New
Exemption Rules
CALGARY, ALBERTA--(Marketwired - May 29, 2014) - MAGNUM ENERGY
INC. ("Magnum" or the "Corporation") (TSX-VENTURE:MEN) Magnum
announced today that further to its original financing announcement
on May 28, 2014, the company will also make the offer to subscribe
for new capital available to existing shareholders, who can avail
themselves of the offer under a new prospectus exemption process as
set out in BC Instrument 45-534. The information required in terms
of BC Instrument 45-534 is set out later in this release.
Magnum intends to raise up to a maximum of C$500,000 by a
non-brokered private placement financing, to work over existing oil
wells on its Provost project and natural gas wells on its Sedalia
project in Southern Alberta.
Corporate Financing
The private placement will consist of up to 10 million Units at
a price of C$0.05 per Unit. Each Unit will consist of one common
share and one common share purchase Warrant. Each Warrant will
entitle the holder to purchase one common share at a price of
C$0.10 per share, exercisable for a period of 24 months from the
date of issuance.
Subject to the TSX Venture Exchange approval, the Company may
pay finders a fee consisting of cash and warrants from the proceeds
of the proposed Offering.
All of the Units issued will be subject to a four-month hold
period. The Private Placement is subject to acceptance by the TSX
Venture Exchange.
BC Instrument 45-534 Information
The offer will also be made to all shareholders, who as of the
share register record date of May 28, 2014 held common shares in
the Company (shareholders resident in Ontario, Newfoundland and
Labrador, and countries other Canada, will need to meet local
jurisdiction requirements to participate).
The subscribing shareholder, in purchasing the ordinary shares
on offer as principal, will need to represent in writing that they
were, on or before the record date a shareholder of the Company
(and still are).
The aggregate acquisition cost to a subscribing shareholder
cannot exceed $15,000 unless that shareholder has obtained advice
regarding the suitability of the investment from a registered
investment dealer in the residential jurisdiction.
The maximum aggregate gross proceeds are C$500,000 (representing
the maximum number of Units to be issued of 10 million). There is
no minimum of gross proceeds on this offering. If subscriptions
received exceed the maximum offering, units will be allocated pro
rata amongst all subscribers.
In completing the financing, the Company may utilize other
available regulatory exemptions in addition to the new existing
shareholder exemption.
Use of Proceeds
Magnum's immediate focus is to bring the existing production
behind pipe at the Provost and Sedalia projects back into
production by completing work-overs on wells that need mechanical
attention that is cyclical in nature.
As at the date of this news release, it is anticipated that, if
the offering of C$500,000 is fully subscribed, the Company would
use up to C$425,000 to complete well work-overs at the Provost and
Sedalia locations in Southern Alberta. General & administration
expenses and finder's fees would make up the other C$75,000 of the
offering. If the offering is not fully subscribed the company will
pay finder's fees and general and administration expenses of up to
C$75,000 and the rest of the proceeds would go towards the well
work-overs. While it is intended that Magnum will spend the funds
available to it as stated, there may be circumstances where, for
sound business reasons, a reallocation of funds may be
necessary.
This offer is available to all security holders who held our
common shares on or before May 28, 2014. This offer will be open
until June 13, 2014. If you are a security holder who is interested
in participating in this offering; or for further information on
Magnum Energy Inc., please see contact information below.
We seek Safe Harbor.
Forward-looking statements:
Certain statements in this release are forward-looking
statements, including with respect to Magnum's proposed use of
proceeds raised from the above-described private placement.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such
statements are subject to risks and uncertainties that may cause
actual results, performance or developments to differ materially
from those contained in the statements. No assurance can be given
that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits Magnum
will obtain from them. In particular, there may be circumstances
where, for sound business reasons, a reallocation of funds may be
necessary. These forward-looking statements reflect management's
current views and are based on certain expectations, estimates and
assumptions which may prove to be incorrect. A number of risks and
uncertainties could cause our actual results to differ materially
from those expressed or implied by the forward-looking statements,
as well as other factors beyond the Company's control. These
forward-looking statements are made as of the date of this news
release.
Neither 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 release.
Magnum Energy Inc.Richard NemethPresident &
CEO604.948.2688rnemeth@magnumenergyinc.comMagnum Energy Inc.Jon
BeyCorporate
Development604-375-4488jbey@magnumenergyinc.comwww.magnumenergyinc.com
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