Proceeds used to repay credit facility after lenders demand payment
By Devika Patel
Knoxville, Tenn., Nov. 29 - 3MV Energy Corp. said it raised C$300,000 in the second tranche of a C$5 million non-brokered private placement of units. It raised C$110,000 on Oct. 19.
The company is selling 20 million units of one common share and one warrant at C$0.25 per unit. It sold 440,000 units in the first tranche and 1.2 million units in the second.
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 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$5 million
|
| Units: | 20 million
|
| Price: | C$0.25
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.50
|
| Agent: | Non-brokered
|
| Settlement date: | Oct. 19 (for C$110,000), Nov. 29 (for C$300,000)
|
| Stock symbol: | TSX Venture: TMV
|
| Stock price: | C$0.28 at close Oct. 18
|
| Market capitalization: | C$8.8 million
|
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