CALGARY, Alberta, Dec. 21, 2018 (GLOBE NEWSWIRE) — GRANITE OIL CORP. (“Granite” or the “Company”) (TSX: GXO) (OTCQX: GXOCF) announces that it has issued a 3 million common shares (the “Shares”) at a price of $0.52 per Share for aggregate gross proceeds of $1.56 million pursuant to a non-brokered private placement (the “Offering”). An additional closing of the Offering may be completed for combined total proceeds of up to $2 million. People interested in participating in the Offering should contact the Corporation. The proceeds of the Offering will be used by Granite for general working capital purposes.
Under the Offering, each of Michael Kabanuk, President and CEO of the Company, and Brendan Carrigy, Chair of the Board and a director of the Company, purchased 480,000 Shares, Kathy Turgeon, a director of the Company, purchased 40,000 Shares and GMT Capital Corp. and associated affiliates, holding over 10% of the Shares of the Company, purchased an aggregate of 2,000,000 Shares. Their participation is considered to be a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities to be distributed in the Offering nor the consideration to be received for those securities, in so far as the Offering involves the insiders, exceeds 25% of the Company’s market capitalization. The completion of the Offering is subject to the Company receiving all necessary regulatory approvals, including final approval of the Offering from the Toronto Stock Exchange.
For further information, please contact Michael Kabanuk, President & CEO, by telephone at (587) 349-9123, Devon Griffiths, COO, by telephone at (587) 349-9120, or Tyler Klatt, V.P. Exploration, by telephone at (587) 349-9125.