THIS PRESS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION IN THE UNITED STATES BY PRESS AGENCIES OR FOR DISTRIBUTION IN THE UNITED STATES.
LAVAL, Quebec, Oct. 30, 2018 (GLOBE NEWSWIRE) -- AXE EXPLORATION INC. (the "Corporation") announces that it will make a rights offering (the "Rights") to each of its holders of common shares (the "Common Shares") registered as at October 25, 2018 at closing of the registry ("Closing Date"), on the basis of one (1) Right for each Common Share held by the Shareholders of the Corporation, 1 to 1 (the "Rights Offering"). Each Right entitles the holder thereof to subscribe to one (1) Common Share upon payment of the subscription price of $ 0.04 per Common Share ($ 0.64 per consolidated Common Share upon the closing of the transaction and the consolidation announced July 24, 2018). The Rights will be transferable but will not trade on any stock exchange.
The Rights Offering and the exercise period of the Rights by the Shareholders will begin on November 28, 2018 and end on February 26, 2019, 17:00 p.m. at which time the Rights will expire (the "Expiry Time"). Rights that have not been exercised before the Expiry Time will be null and void. Shareholders who exercise all of their Rights will not be entitled to subscribe for additional Common Shares that have not been subscribed by other holders of Rights prior to the Expiry Time.
All details of the Rights Offering will be set out in the Rights Offering Circular and the Rights Offering Notice which will be filed under the Corporation's profile on SEDAR at www.sedar.com. The Rights Offering Notice and its related Rights certificate will be mailed to each registered Shareholder that is a resident of Canada on the Closing Date. Registered Shareholders wishing to exercise their Rights will be required to complete and send the Rights Certificate, together with the applicable payment, to Computershare Investors Services Inc. who will act as Rights issue agent for the Offering of Rights, by the Expiry Time, at the very latest. Shareholders who hold their Common Shares through a broker, portfolio advisor, bank or trust company will receive relevant documentation and instructions from their intermediary. The Corporation will not issue Rights to Shareholders resident in any jurisdiction outside of Canada (the "Ineligible Holders") unless such Shareholder can demonstrate that it has a prospectus exemption under the applicable legislation in the Shareholder’s jurisdiction of residence.
The Corporation has not retained the services of any party to solicit subscriptions for its Common Shares under the Rights Offering.
The Corporation currently has 62,932,645 Common Shares issued and outstanding. If all Rights issued under the Rights Offering are validly exercised, the gross proceeds of the Rights Offering will be $ 2,517,306. The Corporation intends to use the net proceeds of the Rights Offering for its working capital.
Under a management agreement and a consulting agreement entered into in October 2007 and January 2011 respectively among the Corporation and Ressources Lutsvisky Inc. ("Lutsvisky”), Lutsvisky is entitled to receive an amount of $361,300 in the event of their unilateral termination by the Corporation. Lutsvisky is a privately held corporation wholly owned by David McDonald who is also President, Chief Executive Officer and a director of the Corporation. The Corporation announces having agreed that it will pay to Lutsvisky (after a reduction and renunciation of $86,300) an aggregate amount of $ 275,000 in payment of debts payable in Common Shares at a deemed price of $ 0.05 per Common Share. A number of 5,500,000 Common Shares is therefore linked to this debt settlement. Common Shares will be subject to a statutory four-month hold period.
Neither the CSE, the TSX Venture Exchange/NEX nor their regulation services providers (as that term is defined in their respective policies) accepts responsibility for the adequacy or accuracy of this news release.
This news release may contain forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in these statements.
For further information, please contact:
|For AXE Exploration Inc. :|
|Johanne Moreau, CFO|
|Telephone: (450) 622-5785|