MGM Energy Corp.

TSX : MGX


MGM Energy Corp.

December 05, 2012 17:00 ET

MGM Energy Corp. Announces Completion of Rights Offering

CALGARY, ALBERTA--(Marketwire - Dec. 5, 2012) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW

MGM Energy Corp. (TSX:MGX) ("MGM Energy" or the "Company") today announced that it has completed its rights offering which was announced on October 22, 2012.

A total of approximately 74.0 million common shares will be issued pursuant to the rights offering, representing gross proceeds of approximately $11.8 million at the subscription price of $0.16 per share. The rights offering was fully subscribed through the basic and over-subscription privileges. As a result, no shares were required to be purchased through the standby purchase agreement with Clayton H. Riddell.

With the closing of the rights offering, MGM Energy has a total of approximately 388.5 million common shares issued and outstanding.

Advisory

This news release does not constitute an offer to sell, or the solicitation of an offer to buy securities in any jurisdiction, including the United States, absent registration or an applicable exemption therefrom, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of such state. The Rights and the Common Shares will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, a U.S. person, absent registration or an applicable exemption therefrom.

MGM Energy is a Canadian oil and natural gas exploration and development company active in Northern Canada. MGM Energy's common shares are listed on the TSX under the symbol "MGX".

For Further Information:

Further information relating to MGM Energy may be found on www.sedar.com as well as on MGM Energy's website at www.mgmenergy.com or by contacting Henry Sykes or Rick Miller.

Forward-Looking Information

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information includes management's ability to raise the anticipated gross proceeds from the rights offering and the failure to obtain final approval from the TSX and the securities commissions. Although MGM Energy believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. MGM Energy disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Contact Information

  • MGM Energy Corp.
    Henry Sykes
    President
    (403) 781-7800
    (403) 781-7801 (FAX)

    MGM Energy Corp.
    Rick Miller
    Chief Financial Officer
    (403) 781-7800
    (403) 781-7801 (FAX)
    www.mgmenergy.com