CALGARY, ALBERTA–(Marketwired – Dec. 17, 2015) –
Manitok Energy Inc. (“Manitok” or the “Corporation“) (TSX VENTURE:MEI) is pleased to announce that Manitok has entered into a letter agreement with syndicate of agents (the “Agents“) co-led by Integral Capital Markets, a division of Integral Wealth Securities Limited and GMP Securities L.P., with a syndicate including Dundee Securities Inc., National Bank Financial Inc. and Canaccord Genuity Group Inc., in connection with a best-efforts private placement offering with a minimum of $10,000,000 and a maximum of $20,000,000 (the “Offering“).
The Offering will consist of common shares (the “Common Shares“) in the capital of Manitok issued at a price of $0.13 per Common Share and Common Shares (“Flow-through Shares“) issued on a “flow-through” basis in respect of Canadian exploration expense under the Income Tax Act (Canada) at a price of $0.15 per Flow-through Share with the gross proceeds from the issuance of the Flow-through Shares not to exceed $6,000,000. The Offering is expected to close in two tranches with the first tranche to close on or before December 31, 2015 and the final tranche to be closed on or about January 15, 2015. The proceeds from the Offering of the Common Shares will be used by Manitok to reduce its bank debt, for Manitok’s 2016 capital program and for general corporate purposes. The proceeds from the Offering of the Flow-through Shares will be used by Manitok to earn eligible Canadian exploration expenses.
Upon completing the minimum equity raise, Manitok’s credit facility will be revised to $60 million in January 2016. The previously reported $10 million payment in March 2016 and $20 million payment in May 2016 will no longer be required. The credit facility will be up for a customary review in June 2016.
Completion of the Offering will be subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange, Manitok obtaining from its lender, approval for certain amendments to its existing credit facility, including certain extension and reduction in the existing principal repayment schedule. All of the securities issued in connection with the Offering will be subject to a four-month hold period under applicable Canadian securities laws.