Marksmen Energy Inc.
TSX VENTURE : MAH
OTCQB : MKSEF

Marksmen Energy Inc.

April 01, 2016 08:30 ET

Marksmen Announces Proposed Private Placement

CALGARY, ALBERTA--(Marketwired - April 1, 2016) - Marksmen Energy Inc. ("Marksmen" or the "Company") (TSX VENTURE:MAH)(OTCQB:MKSEF) announces that, further to its previous press releases, it does not intend to complete any additional closings of its previously announced non-brokered private placement of up to 10,000,000 common shares (the "Common Shares") of Marksmen at a price of $0.08 per share for aggregate gross proceeds of up to $800,000.

The Company further announces that it intends to complete a non-brokered private placement of up to 20,000,000 Common Shares at a price of $0.05 per share for aggregate gross proceeds of up to $1,000,000 (the "Private Placement").

Marksmen may pay a commission or finder's fee to qualified non-related parties of up to 8% of the gross proceeds of the Private Placement (up to $80,000) and broker warrants (the "Broker Warrants") equal to up to 8% of the number of Common Shares sold in the Private Placement (up to 1,600,000). Each Broker Warrant will entitle the holder to acquire one Common Share at a price of $0.05 per Broker Warrant for a period of one (1) year from the date of issuance.

The proceeds of the Private Placement will be used primarily for on-going capital projects including the drilling, completing and equipping of well(s) in Pickaway County, Ohio, USA. The gross costs of the Company's first well, Davis Holbrook #1, are estimated to be $125,000 USD to drill, $75,000 USD to complete and $100,000 USD for surface and related equipment. In total this equates to approximately $390,000 CDN. A third party has the right to participate in this well up to 25%. The Company may opt, in conjunction with the third party, to drill a second well on the same formation. Alternatively, a portion of the funds will be used to further optimize existing wells with recompletions and workovers estimated at approximately $100,000 USD or $130,000 CDN. Remaining proceeds will be used to fund general and administrative obligations.

The Private Placement is being offered to all of the existing shareholders of Marksmen who are permitted to subscribe pursuant to the Existing Shareholder Exemption. This offer is open until May 6, 2016 or such other date or dates as the Company determines. Any existing shareholders interested in participating in the Private Placement should contact the Company pursuant to the contact information set forth below.

The Company has set March 31, 2016 as the record date for the purpose of determining existing shareholders entitled to subscribe for Common Shares pursuant to the Existing Shareholder Exemption. Subscribers purchasing Common Shares under the Existing Shareholder Exemption will need to represent in writing that they meet certain requirements of the Existing Shareholder Exemption, including that they were, on or before the record date, a shareholder of the Company and still are a shareholder as at the closing date. The aggregate acquisition cost to a subscriber under the Existing Shareholder Exemption cannot exceed $15,000 unless that subscriber has obtained advice obtained from a registered investment dealer regarding the suitability of the investment.

In addition to offering the Private Placement pursuant to the Existing Shareholder Exemption, the Private Placement is also being offered pursuant to other available prospectus exemptions, including sales to accredited investors. Unless the Company determines to increase the gross proceeds of the Private Placement, if subscriptions received for the Private Placement based on all available exemptions exceed the maximum Private Placement amount of $1,000,000, Common Shares will be allocated pro rata among all subscribers qualifying under all available exemptions.

Completion of the Private Placement is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange. The Common Shares issued will be subject to a four month hold period from the date of the closing of the Private Placement.

Neither the 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 news release.

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the use of proceeds, operations and the closing of the private placement including the Company's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Marksmen's disclosure documents on the SEDAR website at www.sedar.com. Marksmen does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Contact Information

  • Marksmen Energy Inc.
    Archie Nesbitt
    Director and CEO
    (403) 265-7270
    info@marksmen.ca