CALGARY, ALBERTA–(Marketwired – Oct. 13, 2016) – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) is pleased to announce that it has priced its previously announced marketed underwritten offering of units of Manitok (the “Units“) and has increased the size of the offering from 200,000 Units to 212,071 Units for total aggregate gross proceeds of $21.2 million (the “Offering“). In connection with the Offering, Manitok has filed a prospectus supplement dated October 12, 2016 (the “Prospectus Supplement“) and has entered into an underwriting agreement dated October 12, 2016 (the “Underwriting Agreement“) with a syndicate of underwriters (the “Underwriters“) co-led by Raymond James Ltd. and Integral Wealth Securities Limited as joint lead bookrunners.
Each Unit will consist of a $100 principal amount senior secured notes due 2021 with an interest rate of 10.5% per annum (“Collateralized Exchange Listed Notes” or “CEL Notes™“) and 164 common share purchase warrants (“Warrants“). The Units will immediately separate into CEL Notes and Warrants upon issuance. The CEL Notes will mature on November 15, 2021. Interest on the CEL Notes will be payable quarterly in arrears. Each Warrant will entitle the holder thereof to purchase one common share of Manitok at an exercise price equal to $0.18 per common share, subject to adjustment, at any time until 5:00 p.m. (Calgary time) on November 15, 2021.
The CEL Notes and the Warrants will be governed by a note indenture and a warrant indenture, respectively, each of which will be entered into on the closing date of the Offering by the Corporation and Computershare Trust Company of Canada. Closing of the Offering is scheduled to occur on or about October 27, 2016 or such later date as may be agreed to between Manitok and the Underwriters but no later than the date that is 42 days after the filing of the Prospectus Supplement.
As previously announced in its September 29, 2016 press release (the “September 29 Press Release“), the Corporation expects to use the net proceeds of the Offering for the acquisition (the “Acquisition“) of certain assets that averaged 1,934 boe/d (32% light oil and NGLs) of production in the second quarter of 2016 and that are anticipated to average approximately 1,750 boe/d (34% light oil and NGLs) in November 2016 upon the closing of the Acquisition. The remaining net proceeds of the Offering will be used to reduce the amount drawn on Manitok’s senior secured credit facility. For further details on the Acquisition please refer to the Corporation’s September 29 Press Release, a copy of which is available under Maintok’s profile on SEDAR at www.sedar.com or on Manitok’s website at www.manitokenergy.com.
Completion of the Offering and the Acquisition is subject to necessary regulatory approvals, including the approval of the TSX Venture Exchange. The Corporation has received conditional approval from the TSX Venture Exchange to list the CEL Notes, the Warrants and the common shares issuable on the exercise of the Warrants on the TSX Venture Exchange. Listing will be subject to the Corporation fulfilling all of the applicable listing requirements of the TSX Venture Exchange.
Manitok is a public oil and gas exploration and development company focused on conventional Mannville and Cardium oil and gas reservoirs in both southeast, and west central Alberta. The Corporation will utilize its experience to develop the untapped conventional oil and liquids-rich natural gas pools in its core areas of the Western Canadian Sedimentary Basin.