CALGARY, ALBERTA–(Marketwired – May 19, 2016) – Manitok Energy Inc. (“Manitok” or the “Corporation“) (TSX VENTURE:MEI) is pleased to announce that on May 19, 2016, Manitok closed the first tranche of its previously announced best-efforts private placement offering of (i) common shares (the “Common Shares“) in the capital of Manitok issued at a price of $0.18 per Common Share, and (ii) Common Shares (the “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 $0.21 per Flow-through Share (the “Brokered Private Placement“). Under the first tranche closing of the Brokered Private Placement, Manitok issued 8,435,945 Common Shares and 7,994,980 Flow-through Shares for aggregate proceeds of approximately $3,197,416.
In connection with the Brokered Private Placement, Manitok has entered into an agency agreement dated effective as of May 19, 2016 with a syndicate of agents (collectively, the “Agents“) led by Integral Wealth Securities Limited, and including Dundee Securities Ltd., whereby Manitok has agreed to pay the Agents a fee equal to 5.0% of the gross proceeds raised under the Brokered Private Placement.
The proceeds from the sale 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 sale of the Flow-through Shares will be used by Manitok to incur eligible Canadian exploration expenses. Manitok does not intend to use the net proceeds from the first tranche closing of the Brokered Private Placement until the final tranche of the Brokered Private Placement has been completed. Based on ongoing expressions of interest, Manitok expects to close a second tranche of the Brokered Private Placement in June 2016.
Completion of the Brokered Private Placement will be subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange. All of the securities issued in connection with the Brokered Private Placement are subject to a four-month hold period under applicable Canadian securities laws.
About Manitok
Manitok is a public oil and gas exploration and development Corporation focusing on conventional oil and gas reservoirs in the Canadian foothills and southeast Alberta. The Corporation will utilize its experience to develop the untapped conventional oil and liquids-rich natural gas pools in both the foothills and southeast Alberta areas of the Western Canadian Sedimentary Basin.