Proceeds used to repay credit facility after lenders demand payment
By Devika Patel
Knoxville, Tenn., Oct. 19 - 3MV Energy Corp. said it raised C$5 million in the first tranche of a C$10 million non-brokered private placement of units with company director Dallas Duce.
The company is selling 40 million units of one common share and one warrant at C$0.25 per unit. It sold 20 million units in the first tranche.
Each warrant is exercisable at C$0.50 for 18 months. The strike price represents a 78.57% premium to the Oct. 18 closing share price of C$0.28.
Proceeds will be used to repay, in part, the company's secured credit facility. The lenders have demanded that the company repay $5.97 million of debt by Oct. 19.
The offering is closing in less than 21 days due to the company's immediate need to repay its secured lenders.
The oil and gas exploration and development company is based in Calgary, Alta.
| Issuer: | 3MV Energy Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$10 million
|
| Units: | 40 million
|
| Price: | C$0.25
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.50
|
| Agent: | Non-brokered
|
| Investor: | Dallas Duce
|
| Settlement date: | Oct. 19 (for C$5 million)
|
| Stock symbol: | TSX Venture: TMV
|
| Stock price: | C$0.28 at close Oct. 18
|
| Market capitalization: | C$182,000
|
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