CALGARY, ALBERTA–(Marketwired – April 21, 2016) – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) is pleased to announce that Manitok has entered into a letter agreement with a syndicate of agents led by Integral Capital Markets, a division of Integral Wealth Securities Limited (the “Agents“), in connection with a best-efforts private placement offering of up to $10,000,000 (the “Offering“).
The Offering will consist of common shares (the “Common Shares“) in the capital of Manitok issued at a price of $0.21 per Common Share and Common Shares (“Flow-through Shares” and together with Common Shares, “Offered Shares“) issued on a “flow-through” basis in respect of Canadian exploration expense under the Income Tax Act (Canada) at a price of $0.24 per Flow-through Share with the gross proceeds from the issuance of the Flow-through Shares not to exceed $4,500,000. The Offering is expected to close in tranches with the first tranche to close on or about May 5, 2016. 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. In addition, the Agents will be granted an over-allotment option to sell up to that number of additional Offered Shares equal to 15% of the number of Offered Shares sold under the Offering, which option can be exercised by the Agents up to two business days of the closing of each of the tranches with the aggregate number of additional Flow-through Shares issued under such option subject to Manitok’s consent. In connection with the Offering, the Agents will be entitled to receive a cash commission equal to 5% of the gross proceeds raised under the Offering.
All securities under the Offering will be subject to a statutory four month hold period. Completion of the Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange.
About Manitok
Manitok is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in southeast Alberta and the Canadian foothills. The Corporation will utilize its experience to develop the untapped conventional oil and liquids-rich natural gas pools in both southeast Alberta and the foothills areas of the Western Canadian Sedimentary Basin.
For further information view our website at www.manitokenergy.com.