Manganese X Provides Update Regarding the Graphano Energy Sp Montreal, Quebec–(Newsfile Corp. – June 24, 2021) – Manganese X Energy Corp. (TSXV: MN) (FSE: 9SC2) (OTCQB: MNXXF) (“Manganese X” or the “Company“), further to the Press Release dated May 20, 2021, is pleased to provide an update regarding the proposed timing of the previously-announced statutory plan of arrangement (“Plan of Arrangement“) with Graphano Energy Ltd. (“Graphano“) to spin out its Lac Aux Bouleaux graphite property, located in the province of Quebec. As of the date of this Press Release, the Company and Graphano are awaiting conditional approval from the TSX Venture Exchange (“TSXV“) for Graphano to list on the TSXV on a post-spin-out basis (under the tentative trading symbol GEL).
Extension of Escrow Release Conditions
Further to the above, on December 22, 2020 and April 19, 2021, Graphano completed a private placement of subscription receipts for aggregate gross proceeds of $4,092,283, (the “Private Placement“), at a price of $0.05 per Subscription Receipt.
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The conversion of the Subscription Receipts is subject to the satisfaction or waiver of certain customary escrow release conditions (the “Escrow Release Conditions“), including receipt of conditional approval from the TSXV, on or prior to June 30, 2021 (the “Outside Date“).
Graphano received a comment letter from the TSXV on June 4, 2021, which it responded to and believed to have fully satisfied the requirements of the TSXV at the time of the response, which would allow them to meet the Escrow Release Conditions prior to the Outside Date. Unfortunately, the TSXV sent an additional comment letter dated June 22, 2021, which means that Graphano will be unable to meet the Escrow Release Conditions prior to the Outside Date. Graphano is currently in the process of seeking approval from subscription receipt holders to extend the Outside Date to August 31, 2021.