By Devika Patel
Knoxville, Tenn., Oct. 9 - Magnus Energy Inc. announced it has amended the terms of a private placement of shares to raise up to C$9.3 million. The deal priced on July 19 and was downsized to C$6 million on Aug. 22.
The company now will sell 83,333,333 flow-through class A shares at C$0.036 per share and 210,000,000 non-flow-through class A shares at C$0.03 apiece.
As previously reported, the placement, slated to close Oct. 31, will satisfy a financing requirement for the planned merger of Magnus and Questerre Energy Corp.
The shares have a four-month hold period.
Dundee Securities Corp. will be paid an advisory fee of 2%, which will be paid in 13,492,927 class A shares at C$0.013785 per share, or C$186,000.
Proceeds will be used for a farm-in agreement on the Beaver River properties of a subsidiary of Questerre Energy.
Magnus is an oil and natural gas exploration company based in Calgary, Alta.
| Issuer: | Magnus Energy Inc.
|
| Issue: | Flow-through class A shares, non-flow-through class A shares
|
| Amount: | C$9.3 million
|
| Adviser: | Dundee Securities Corp.
|
| Fees: | 13,492,927 class A shares
|
| Pricing date: | July 19
|
| Settlement date: | Oct. 31
|
| Stock symbol: | TSX Venture: MEI.A
|
| Stock price: | C$0.035 at close Oct. 9
|
|
|
| Flow-through shares
|
| Shares: | 83,333,333
|
| Price: | C$0.036
|
| Warrants: | No
|
|
|
| Non-flow-through shares
|
| Shares: | 210,000,000
|
| Price: | C$0.03
|
| Warrants: | No
|
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