CALGARY, ALBERTA–(Marketwired – Oct. 27, 2016) –
Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) is pleased to announce that it has closed its previously announced marketed underwritten offering of 212,071 units of Manitok (“Units“) for total aggregate gross proceeds of $21.2 million (the “Offering“). Each Unit will consist of a $100 principal amount senior secured note 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, between the Corporation and Computershare Trust Company of Canada. The Offering was underwritten by a syndicate of underwriters (the “Underwriters“) co-led by Raymond James Ltd. and Integral Wealth Securities Limited as joint lead bookrunners.
As previously announced in its September 29, 2016 press release (the “September 29 Press Release“), the Corporation intends to use a portion of 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. The Corporation anticipates closing the Acquisition shortly but in any event it is expected to close on or about November 2, 2016.
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.
The Corporation has received final 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. The CEL Notes and the Warrants will commence trading at the opening of the markets on October 27, 2016 under the trading symbols, MEI.DB and MEI.WT, respectively.
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.