No doubt E for effortOne cannot argue that best efforts are being taken to raise funds. No one can accuse them of not trying. I think they may be able to pull off the minimum amount of 15M with 7.5M DB's and 7.5M flow throughs. A few months ago I estimated NAV at or below .17 before financing so maybe they can pull a rabbit with .30 cent flow throughs. I am interested to see upcoming financials to re-evaluate as the dilution on deal like this should see the stock trade down to below .15 at which point a roll of the dice on drlling success might become interesting. The bank will have first floating charge against all present and future assets but with drilling success they could pay this off in a few years. I truly believe that buying free trading shares at .30 cents is asking for a 50%-60% haircut .. clearly someone who is in the know at fidelity thinks the stock is over valued as well. Financials are late IMO but still within regulations, I expect them shortly and they should be an interesting read. Desigated bagholder is going to hold some expensive shares.. IMO of course. One might put a premium on the company based on past management success and of course they will use this as promotional tool, but in reality this has changed with GDN being their most recent kick at the can. GDN/TBD has been a massive blunder so far. I have concluded GDN's demise was 100% due to bad decision making. Of course just my opinion and one should really do their own DD before making any investment decision on any stock.
As always Good luck AEC
Artisan further extends closing of Provost acquisition
2014-04-02 16:50 ET - News Release
Also News Release (C-MEN) Magnum Energy Inc
Mr. Rick Ironside reports
ARTISAN ENERGY ANNOUNCES EXTENSION TO CLOSING OF VIKING LIGHT OIL ACQUISITION AND FILING OF AN AMENDED SHORT-FORM PRELIMINARY PROSPECTUS
As previously announced, Artisan Energy Corp. and Magnum Energy Inc. have entered into a purchase and sale agreement (subject to certain closing conditions) pursuant to which Artisan will acquire Magnum's 50-per-cent-operated working interest in 2,720 gross acres (1,360 net acres) of land in the Provost area of Alberta. The purchase and sale agreement has been amended further to extend the closing date to April 22, 2014, with an effective date of March 31, 2014.
Filing of amended and restated short-form prospectus
As previously announced, Artisan filed a preliminary short-form prospectus on Feb. 21, 2014, in connection with a public offering, on a commercially reasonable efforts basis, and engaged Clarus Securities Inc. to act as agent with respect to the offering.
Artisan has filed an amended and restated preliminary short-form prospectus dated April 2, 2014, with respect to the offering as the terms of the offering have been amended. The minimum and maximum gross proceeds of the offering will remain at $15-million and $25-million, respectively. The offering will now include up to $7.5-million of secured convertible debentures. The convertible debentures will have a term of three years from the date of closing of the offering, will bear an annual interest rate of 9 per cent to be paid semi-annually and will be convertible into common shares of Artisan at two times the issue price per common share pursuant to the offering, at any time prior to expiry or redemption. Artisan may redeem the convertible debentures without penalty at any time after two months; however, regardless of any such early redemption, Artisan will be committed to payment of the first year of interest.
Assuming the maximum amount of convertible debentures is sold, the remaining amount of the offering, being minimum gross proceeds of $7.5-million and maximum gross proceeds of $17.5-million, will consist of common shares in the capital of the corporation and common shares issued on a flow-through basis.
All other terms relating to the offering will remain as previously announced.
Artisan has obtained a receipt for the amended and restated preliminary short-form prospectus filed with the securities regulatory authorities in each of the provinces of Alberta, British Columbia and Ontario. Artisan has applied to list the convertible debentures distributed under the short-form prospectus and the common shares issuable on conversion of the convertible debentures, along with the offered shares, on the TSX Venture Exchange. The closing of the offering is subject to certain closing conditions, including, but not limited to, the issuance of a receipt by the securities regulatory authorities in each of the provinces of Alberta, British Columbia and Ontario for a final short-form prospectus qualifying the distribution of the offered shares and the convertible debentures, the approval of the TSX Venture Exchange, and execution of an agency agreement between the corporation and the agent.
New revolving credit facility
As previously announced, Artisan has executed a non-binding, indicative term sheet dated Feb. 13, 2014, with ATB Financial, which contemplates the grant to the corporation of a secured, demand, revolving credit facility in the amount of $5-million. The ATB credit facility is expected to be revised to a facility in the amount of $4.5-million. The ATB credit facility would be secured by, among other things, a general security agreement providing a first floating charge over all present and after acquired real and personal property of the corporation and an undertaking to grant, at the request of ATB, a first fixed charge against all property interests of the corporation. Interest payable on the ATB credit facility would be the prime rate of interest plus 1.75 per cent per annum. The ATB term sheet provides that the ATB credit facility is being granted to finance development of Artisan's developmental light oil projects. The formal granting of the ATB credit facility remains subject to ATB's satisfactory completion of due diligence and internal credit approval and closing of the acquisition of the Provost asset and the minimum offering. For additional details see the amended preliminary prospectus on SEDAR.
We seek Safe Harbor.