Magnum Energy Inc.

Magnum Energy Inc.

March 23, 2009 13:14 ET

Magnum Energy Inc. Announces Debt Settlement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2009) - Magnum Energy Inc. (TSX VENTURE:MEN) (the "Company") -

Further to its February 18, 2009 news release, the Company is pleased to announce that the TSX Venture Exchange has accepted for filing the Company's proposal to issue 214,058 common shares at a deemed price per share of $0.30 per share to settle $64,217.50 in debt with Red Tree Ventures Ltd. ("Red Tree"). All of the common shares issued in connection with the debt settlement are subject to a four month hold expiring on July 18, 2009.

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.

After giving effect to the debt settlement, the Company will have 25,143,572 common shares issued and outstanding.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Magnum Energy Inc.
    Richard Nemeth
    (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)