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CALGARY, Alberta and TORONTO, July 30, 2020 (GLOBE NEWSWIRE) -- Magnetic North Acquisition Corp. (TSXV: MNC) (“Magnetic North” or the “Company”) is pleased to announce the initial closing for its non-brokered private placement (the “Financing”) of Series A Preferred Shares for gross proceeds of up to $1,200,000 originally announced on July 9, 2020.
On July 30, 2020 the Company completed the issuance of 122,660 Series A Preferred Shares at a price of $10.00 per share for gross proceeds of $1,226,600. The Company paid finder’s fees of $54,000 relating to the closing. Due to increased demand under the Financing, the Company has increased the size of the Financing to a maximum of 150,000 Series A Preferred Shares for aggregate gross proceeds of $1,500,000. One of the directors of the Company participated in the Financing.
The Financing is intended to allow Magnetic North to make investments in certain of the Company’s investee companies and for working capital purposes.
The terms of the Series A Preferred Shares are described in Magnetic North’s most recent financial statements for the second quarter ended March 31, 2020.
The participation by the director in the Financing constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61-101 in respect of the director’s participation in the Financing.
The Series A Preferred Shares issued under the Financing are subject to a resale restriction for a period of four months and one day after issuance.
About Magnetic North Acquisition Corp.
Magnetic North invests and manages businesses on behalf of its shareholders and believes that capital alone does not always lead to success. With offices in Calgary and Toronto, our experienced management team applies its considerable management, operations and capital markets expertise to ensure its investee companies are as successful as possible for shareholders. Magnetic North shares trade on the TSX Venture Exchange under the stock symbol MNC. For more information about Magnetic North, visit its website at www.magneticnac.com. Magnetic North’s securities filings can also be accessed at www.sedar.com.
For further information, please contact:
|Graeme Dick||Kevin Spall||Andrew Osis|
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer’s prospective financial performance or financial position. The forward-looking information in this news release includes the Company’s use of proceeds for the gross proceeds under the Financing.
The Company has made certain material assumptions, including but not limited to: prevailing market conditions; general business, economic, competitive, political and social uncertainties; and the ability of the Company to execute and achieve its business objectives to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include but are not limited to: adverse market conditions; reliance on key and qualified personnel; and regulatory and other risks associated with the industries in which the Company's portfolio companies operate, in general. The Company cautions that the foregoing list of material risk factors and assumptions is not exhaustive.
The Company assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.