Marksmen Energy Successfully Completes Private Placement
Marksmen Energy Inc. (“Marksmen” or the “Company”) has successfully finalized its previously announced non-brokered private placement of units (the “Units”). In this Offering, a total of 19,325,000 Units were issued at an attractive price of $0.01 each, generating gross proceeds of $193,250. Each Unit consists of one common share (the “Common Share”) and one share purchase warrant (the “Warrant”). Warrant holders have the option to purchase one Common Share at a price of $0.05 per share within two years from the issuance date, subject to certain conditions.
Allocation of Proceeds from the Private Placement
Marksmen Energy has detailed its plans for utilizing the gross proceeds from the Offering. Specifically, $50,000 (approximately 26% of the total proceeds) will be directed towards optimizing production for all wells located in Pickaway County, Ohio. An additional $60,000 (around 31%) is earmarked for a technical review and due diligence on potential oil and gas opportunities in Alberta. The remaining funds, totaling $83,250 (approximately 43%), will be set aside for general working capital purposes.
Strategic Goals for Oil and Gas Ventures
The technical review concerning oil and gas opportunities in Alberta is nearing completion, and the Company is optimistic about the developments. One particularly promising project involves partnering with an established energy firm in Alberta, where Marksmen will engage as a non-operator working interest partner. This collaboration aims to either reconfigure or restart production on existing wells, making use of the available pipeline infrastructure and a gas processing facility, thus eliminating the need for new drilling.
Regulatory Compliance and Related Party Transactions
The completion of this Offering is subject to regulatory approval. Marksmen did not pay any cash commissions in relation to the Offering, and the securities issued will be under a standard hold period of four months and one day from the issuance date. Insider participation in the Offering accounts for a significant 75.81%, with a total of 14,650,000 Units acquired. Consequently, this aspect is classified as a “related party transaction” under Multilateral Instrument 61-101.
Clarifying Related Party Transactions
It is important to note that neither the Company nor its related parties possess any undisclosed material information regarding the Company or its securities. Furthermore, the Offering qualifies for exemptions from formal valuation and minority shareholder approval requirements as outlined by MI 61-101, facilitating a more efficient approach that aligns with sound business practices.
Implications of Early Warning Reports
In relation to the Offering, Marksmen issued 5,750,000 Units to Conex Services Inc., which is wholly owned by Mr. Glenn Walsh, resulting in total consideration of $57,500. According to Mr. Walsh's early warning report, prior to the Offering, he held 33,112,881 Common Shares, representing approximately 17.24% of the outstanding Common Shares, along with 1,500,000 Warrants. Following the completion of the Offering, Mr. Walsh's holdings increased to 38,862,881 Common Shares, now accounting for 18.38% of the total outstanding Common Shares.
Mr. Walsh's Future Intentions
Mr. Walsh has expressed that he may consider adjusting his holdings in the Company based on market conditions and other evolving factors. A formal report regarding this acquisition will be filed with the relevant securities commissions through the Canadian System for Electronic Document Analysis and Retrieval (SEDAR+), where it will be accessible to the public. For any further inquiries about this news release, interested parties may reach out to 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 successfully raised a total of $193,250 through the 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 allocated for optimizing production, conducting technical reviews, and covering general working capital needs.
Who participated in the private placement?
Insiders of Marksmen participated in the Offering, acquiring approximately 75.81% of the issued Units.
What steps are involved in the regulatory approval of the Offering?
The Offering is subject to regulatory review, particularly concerning compliance with TSX Venture Exchange regulations.
