Company expecting to close a second tranche next month
By Wendy Van Sickle
Columbus, Ohio, May 19 – Manitok Energy Inc. said it closed the first C$3.2 million tranche of its up to C$10 million in a private placement of stock.
The company sold 8,435,945 common shares at C$0.18 apiece and 7,994,980 flow-through common shares at C$0.21 apiece on a best-efforts basis in the first tranche. Manitok previously said it will only sell up to C$4.5 million in flow-through shares.
The prices per share are a 25% and a 12.5% discount to C$0.24, the April 20 closing share price.
The deal is being conducted by a syndicate of agents led by Integral Capital Markets.
The company expects to close a second tranche of the placement in June.
Proceeds will be used for exploration, to reduce bank debt, for the 2016 capital program and general corporate purposes. Manitok said it does not expect to use proceeds from the first tranche until the final tranche has been completed.
The oil and gas company is based in Calgary, Alta.
| Issuer: | Manitok Energy Inc.
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| Issue: | Flow-through common shares, common shares
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| Amount: | C$10 million (maximum)
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| Warrants: | No
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| Agent: | Integral Capital Markets (lead)
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| Pricing date: | April 21
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| Settlement date: | May 19 (for C$3,197,416)
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| Stock symbol: | TSX Venture: MEI
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| Stock price: | C$0.24 at close April 20
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| Market capitalization: | C$20.85 million
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| Flow-through shares
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| Amount: | C$4.5 million (maximum)
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| Price: | C$0.21
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| Common shares
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| Price: | C$0.18
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