Magnum Energy Inc.

Magnum Energy Inc.

February 18, 2009 14:18 ET

Magnum Energy Inc. Announces Debt Settlement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 18, 2009) - Magnum Energy Inc. (TSX VENTURE:MEN) (the "Company") announces that it has entered into an agreement with Red Tree Ventures Ltd. ("Red Tree") as of December 5, 2008 to settle $64,217.50 in debt by way of the issuance of 214,058 common shares at a deemed price per share of $0.30 per share. All of the common shares to be issued in connection with the debt settlement are subject to a four month hold.

The debt settlement is subject to acceptance for filing by the TSX Venture Exchange. After giving effect to the debt settlement, the Company will have 25,143,572 common shares issued and outstanding.

In the event that the shares of Magnum do not trade at a price of $0.30 or more within 12 months from the date of issuance of the shares, Magnum will pay to Red Tree a cash amount equal to the difference in value between the highest trading price and the sum of $0.30 per share multiplied by the number of share issued hereunder. The potential cash payment to Red Tree will be subject to a minimum price per share of $0.13 per share. This cash payment is also subject to the approval of the TSX Venture Exchange.

The TSX Venture Exchange has neither approved or disapproved the contents of this press release.

Contact Information

  • Magnum Energy Inc.
    Richard Nemeth
    President & CEO
    (604) 669-3155
    Magnum Energy Inc. - Head Office
    1280 - 333 Seymour Street
    Vancouver, BC, V6B 5A6
    (604) 669-3155
    (604) 669-3177 (FAX)
    Magnum Energy Inc. - Operations
    Suite 550, 1010 1st Street S.W.
    Calgary, AB, T2R 1K4
    (403) 264-5980
    (403) 261-8060 (FAX)