CALGARY, ALBERTA–(Marketwired – Nov. 29, 2016) – Manitok Energy Inc. (the “Corporation” or “Manitok“) (TSX VENTURE:MEI) is pleased to announce that it has closed its previously announced best efforts offering (the “Offering“) for total aggregate proceeds of approximately $5.05 million, completed by way of a short form base shelf prospectus as supplemented by the Corporation’s prospectus supplement dated November 22, 2016.
In connection with the Offering, Manitok issued:
(a) 7,562,923 common shares of the Corporation (the “Offered Common Shares“) at a price of $0.13 per Offered Common Share;
(b) 4,599,829 common shares of the Corporation issued on a “flow-through” basis with respect to “Canadian development expenses” within the meaning of the Income Tax Act (Canada) and regulations thereunder (collectively, the “Tax Act“) (the “CDE Flow-through Shares“), at a price of $0.14 per CDE Flow-through Share; and
(c) 23,605,879 common shares of the Corporation issued on a “flow-through” basis with respect to “Canadian exploration expenses” within the meaning of the Tax Act (the “CEE Flow-through Shares“, and together with the CDE Flow-through Shares, and the Offered Common Shares, the “Offered Shares“), at a price of $0.145 per CEE Flow-through Share.
The Offered Shares were issued pursuant to the terms of an agency agreement dated effective November 22, 2016 and entered into between the Corporation, Integral Wealth Securities Limited and Raymond James Ltd., as co-lead agents and a syndicate comprised of GMP FirstEnergy and Industrial Alliance Securities Inc.
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.
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.
View our website at www.manitokenergy.com.