Huntington Exploration Inc. (“
HEI" or the
“
Company”) (TSX VENTURE: HEI) announced today that
it has completed the closing of the previously announced
non-brokered private placement offering of units (“Units”), subject
to final approval of the TSX Venture Exchange. HEI issued
10,000,000 Units at a price of $0.05 per Unit, for gross proceeds
of $500,000 (the “Private Placement”). Each Unit consists of one
common share and one transferable common share purchase warrant,
with each warrant entitling the holder thereof to purchase one
additional common share at a price of $0.05 per share for a period
of two years from closing.
The Company intends to use the proceeds from the
Private Placement for general and administrative expenses, to
replenish working capital, to evaluate strategic alternatives and
for general corporate purposes. All securities issued in
connection with the Private Placement are subject to a hold period
that expires on December 15, 2019.
Bob Verhelst, an officer and a director of HEI,
J. Timothy Bowes an officer and director of HEI and Michael
Binnion, a director of HEI, subscribed for, directly and
indirectly, 2,000,000 Units, 1,000,000 Units and 500,000 Units,
respectively, under the Private Placement. HEI has determined that
exemptions from the various requirements of Multilateral Instrument
61-101 are available for the issuance of the Units (Formal
Valuation - Issuer Not Listed on Specified Markets; Minority
Approval - Fair Market Value Not More Than $2,500,000).
Bob Verhelst, an officer and a director of HEI,
acquired 2,000,000 Units, comprised of 2,000,000 common shares
(representing 10.05% of the issued and outstanding common shares)
and 2,000,000 warrants. Prior to the offering, Mr. Verhelst
held 628,062 common shares, or approximately 6.34% of the total
issued and outstanding common shares and 425,000 previously
outstanding common share purchase warrants. Mr. Verhelst now
controls 2,628,062 common shares, or approximately 13.21% of the
total issued and outstanding common shares, 425,000 previous
warrants and 2,000,000 warrants. Upon the exercise of the
warrants, Mr. Verhelst would own 5,053,062 common shares, or
approximately 22.64% of the total issued and outstanding common
shares. In addition, J. Timothy Bowes, an officer and a
director of HEI, acquired 1,000,000 Units, comprised of 1,000,000
common shares (representing 5.03% of the issued and outstanding
common shares) and 1,000,000 warrants. Prior to the
offering, Mr. Bowes held 492,832 common shares, or approximately
4.98% of the total issued and outstanding common shares and
416,667 previously outstanding common share purchase warrants. Mr.
Bowes now controls 1,492,832 common shares, or approximately 7.50%
of the total issued and outstanding common shares, 416,667 previous
warrants and 1,000,000 warrants. Upon the exercise of the
warrants, Mr. Bowes would own 2,909,499 common shares, or
approximately 13.65% of the total issued and outstanding common
shares. The acquisition of the Units by each of Mr. Verhelst and
Mr. Bowes was made for investment purposes. Mr. Verhelst and
Mr. Bowes may increase or decrease their investment in HEI
depending on market conditions or any other relevant factors. The
head office address for HEI is Suite 1920, 407 - 2nd Street SW,
Calgary, AB T2P 2Y3, the address for Mr. Verhelst is 228 Schooner
Cove NW, Calgary, AB T3L 1Z2 and the address for Mr. Bowes is 419
Clearwater Landing, Calgary, AB T3Z 3T2.
HEI is an exploration-focused corporation
actively pursuing opportunities in the oil and natural gas business
in the Western Canada sedimentary basin.
On behalf of the Board of Directors:
Bob VerhelstPresident and CEO
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 release.
Forward Looking Statements
This press release contains certain statements
which constitute forward-looking statements or information
(“forward-looking statements”), including statements regarding
HEI’s business and the Private Placement. Such forward-looking
statements are subject to numerous risks and uncertainties, some of
which are beyond HEI's control, including the impact of general
economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, operational risks in exploration and
development, competition from other industry participants, the
lack of availability of qualified personnel or management, stock
market volatility and the ability to access sufficient capital from
internal and external sources. Although HEI believes that the
expectations in its forward-looking statements are reasonable, they
are based on factors and assumptions concerning future events
which may prove to be inaccurate. Those factors and assumptions are
based upon currently available information. Such statements are
subject to known and unknown risks, uncertainties and other factors
that could influence actual results or events and cause actual
results or events to differ materially from those stated,
anticipated or implied in the forward looking information. As
such, readers are cautioned not to place undue reliance on the
forward looking information, as no assurance can be provided as to
future results, levels of activity or achievements. The
forward-looking statements contained in this document are made as
of the date of this document and, except as required by applicable
law, HEI does not undertake any obligation to publicly update or to
revise any of the included forward-looking statements, whether as
a result of new information, future events or otherwise. The
forward-looking statements contained in this document are
expressly qualified by this cautionary statement.
Huntington Exploration Inc.Bob VerhelstT.
587-351-3538www.huntingtonexploration.ca
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