Marksmen Energy Completes Successful Private Placement

Marksmen Energy Completes Successful Private Placement

Marksmen Energy Inc. (“Marksmen” or the “Company”) has successfully closed its previously announced non-brokered private placement of units (the “Units”). During this Offering, 19,325,000 Units were issued at a favorable price of $0.01 per Unit, resulting in aggregate gross proceeds of $193,250. Each Unit comprises one common share (the “Common Share”) and one share purchase warrant (the “Warrant”). Holders of the Warrant can purchase one Common Share at a price of $0.05 per share within two years from the issuance date, subject to various conditions.

Use of Proceeds from Private Placement

Marksmen Energy has outlined its intention to utilize the gross proceeds from the Offering as follows: $50,000 (approximately 26% of the total proceeds) will be allocated to optimize production for all wells located in Pickaway County, Ohio. Another $60,000 (around 31%) is designated for a technical review and due diligence on potential oil and gas opportunities in Alberta. The remaining funds, amounting to $83,250 (approximately 43%), will be reserved for general working capital purposes.

Strategic Goals for Oil and Gas Opportunities

Currently, the technical review regarding oil and gas opportunities in Alberta is nearing completion, and the Company expresses optimism towards its developments. One particularly promising venture involves a collaboration with an established energy company in Alberta, where Marksmen is set to engage as a non-operator, working interest partner. This partnership involves reconceptualizing or recommencing production on existing wells, leveraging available pipeline infrastructure, and utilizing a gas processing facility, thereby eliminating the need for new drilling.

Regulatory Compliance and Related Party Transaction

The completion of this Offering is pending regulatory approval. Marksmen paid no cash commissions in connection with the Offering, and the securities issued are subject to a standard hold period of four months and one day starting from the date of issuance. Insider participation in the Offering represents a significant 75.81%, with a total of 14,650,000 Units acquired. As such, this aspect classifies as a “related party transaction” under Multilateral Instrument 61-101.

Understanding the Related Party Transactions

It is noted that neither the Company nor its related parties have access to any undisclosed material information regarding the Company or its securities. Moreover, the Offering qualifies for exemption from formal valuation and minority shareholder approval mandates as stipulated by MI 61-101, allowing for a streamlined approach that aligns with efficient business practices.

Impact of Early Warning Reports

In connection with the Offering, Marksmen issued 5,750,000 Units to Conex Services Inc., entirely owned by Mr. Glenn Walsh, yielding total consideration of $57,500. According to Mr. Walsh's early warning report, prior to the Offering, he held 33,112,881 Common Shares, equating to approximately 17.24% of the outstanding Common Shares and 1,500,000 Warrants. Following the Offering’s completion, Mr. Walsh's holdings increased to 38,862,881 Common Shares, representing 18.38% of the total outstanding Common Shares.

Future Intentions of Mr. Walsh

Mr. Walsh has indicated that he may choose to adjust his holdings in the Company based on market conditions and evolving circumstances. A formal report regarding this acquisition will be submitted to the pertinent securities commissions via the Canadian System for Electronic Document Analysis and Retrieval (SEDAR+), available for public viewing. For any additional inquiries regarding this news release, interested parties may contact Archie Nesbitt, Director and CEO of Marksmen, at (403) 265-7270.

Frequently Asked Questions

What is the amount raised through Marksmen Energy's recent private placement?

Marksmen Energy raised a total of $193,250 through the successful closing of its private placement.

How many units were issued during the Offering?

A total of 19,325,000 Units were issued as part of the Offering.

What will the proceeds from the Offering be used for?

The proceeds will be used to optimize production, conduct technical reviews, and for general working capital needs.

Who participated in the private placement?

Insiders of Marksmen participated in the Offering, acquiring approximately 75.81% of the Units issued.

What steps are involved in the regulatory approval of the Offering?

The Offering is subject to regulatory scrutiny, particularly regarding compliance with TSX Venture Exchange regulations.

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