CALGARY, ALBERTA–(Marketwired – Nov. 17, 2016) – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) announced today that in light of the availability of flow though capital from certain existing shareholders it has decided to initiate a public equity offering to improve its liquidity position.
Manitok has filed a draft prospectus supplement dated November 17, 2016 (the “Preliminary Prospectus Supplement“) in connection with a best efforts offering (the “Offering“) of (a) common shares of the Corporation (“Offered Common Shares“); (b) flow-through common shares of the Corporation (“CDE Flow-through Shares“) with respect to “Canadian development expenses” within the meaning of the Income Tax Act (Canada) and regulations thereunder (the “Tax Act“); and (c) flow-through common shares of the Corporation (“CEE Flow-through Shares” and together with the Offered Common Shares and CDE Flow-through Shares, the “Offered Shares“) with respect to “Canadian exploration expenses” within the meaning of the Tax Act. The Offered Shares will be issued pursuant to the terms of an agency agreement to be entered into between Integral Wealth Securities Limited and Raymond James Ltd, as co-leads (the “Lead Agents“), and a syndicate comprised of GMP Securities Ltd and Industrial Alliance Securities Inc. (together with the Lead Agents, the “Agents“) and the Corporation. The minimum gross proceeds to be raised under the Offering will be $3 million. The Offering is anticipated to be priced during the week of November 22nd and close by the end of November.
The Corporation will use the net proceeds of the Offered Common Shares sold under the Offering to temporarily reduce borrowings under Manitok’s senior secured credit facility, which will be drawn for its 2016/2017 drilling program. The Corporation intends to use the gross proceeds from the issuance of the CDE Flow-through Shares to incur “Canadian development expenses” within the meaning of the Tax Act and to use the proceeds from the issuance of the CEE Flow-through Shares to incur “Canadian exploration expenses” within the meaning of the Tax Act.
Completion of the Offering is subject to customary regulatory approvals, including the approval of the TSX Venture Exchange. The Corporation has applied to list the Offered Shares 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.