Madalena Energy Inc.
TSX VENTURE : MVN

Madalena Energy Inc.

December 21, 2016 19:56 ET

Disposition of a 3% Senior Subordinate Secured Convertible Debenture in the Principal Amount of $3,000,000 of Point Loma Resources Ltd. by Madalena Energy Inc.

CALGARY, ALBERTA--(Marketwired - Dec. 21, 2016) -

NOT FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Pursuant to the early warning requirements of applicable Canadian securities laws and in connection with a 3% senior subordinate secured convertible debenture in the principal amount of $3,000,000 (the "Convertible Debenture") of Point Loma Resources Ltd. (the "Company" or "Point Loma") issued on June 28, 2016 to Madalena Energy Ltd. (TSX VENTURE:MVN) ("Madalena"), Madalena reports that it has entered into an agreement dated December 20, 2016 (the "Purchase Agreement") with two separate purchasers (the "Purchasers") and has sold the Convertible Debenture for gross proceeds of $700,000 in cash.

As a result of the Purchase Agreement, Madalena disposed of its entire interest in the $3,000,000 Convertible Debenture and, following the disposition of the Convertible Debenture, Madalena will continue to own 6,244,814 common shares ("Common Shares") in the capital of the Company.

On December 12, 2016, Madalena filed a Notice of Intention to Distribute Securities under Section 2.8 of NI 45-102 - Resale of Securities on its SEDAR profile (the "Notice"). Pursuant to the Notice, Madalena has disclosed an intention to sell 624,000 Common Shares pursuant to the facilities of the TSX Venture Exchange. However, as of the date hereof, Madalena continues to own and exercise control over an aggregate of 6,244,814 Common Shares. Though it is its current intention to do so, Madalena is under no obligation to complete the disposition referred to in the Notice.

Additionally, Madalena may, depending on market and other conditions, increase or decrease its ownership of Common Shares of the Company, whether in the open market, by privately negotiated agreement or otherwise going forward.

For further details regarding the disposition of the Convertible Debenture described above, see the Early Warning Report dated December 21, 2016 available on the Company's SEDAR profile.

FOR FURTHER INFORMATION OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED IN CONJUNCTION WITH THIS PRESS RELEASE, PLEASE CONTACT 403-262-1901.

Contact Information

  • Madalena Energy Inc.
    200, 707 - 7 Avenue S.W.
    Calgary, Alberta, Canada
    T2P 3H6
    Telephone: 403-262-1901

    The Company's head office is located at:
    Point Loma Resources Ltd.
    500, 633 - 6 Avenue S.W.
    Calgary, Alberta, Canada
    T2P 2Y5