NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES
MAGNOLIA CLOSES PRIVATE PLACEMENT FINANCING
December 13, 2017 Toronto, Ontario – Magnolia Colombia Limited. (“Magnolia” or the “Company”) (TSXV: MCO) has closed its previously announced non-brokered private placement financing of 15,000,000 units of Magnolia (the “Units”) at a price of $0.10 per Unit for gross proceeds of $1,500,000 (the “Offering”). Each Unit is comprised of one common share of Magnolia (each a “Common Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at a price of $0.15 for a period of 24 months following the closing date of the Offering. If at any time after four months and one day from the closing of the Offering, the Common Shares of the Company trade at $0.25 per Common Share or higher (on a volume weighted adjusted basis) for a period of 15 consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right.
The proceeds of the Offering will be used for general corporate purposes and to pursue new opportunities. All securities issued by Magnolia are subject to a statutory hold period of four months and one day. The Offering remains subject to receipt of final approval from the TSX Venture Exchange.
In connection with the Offering, the Company paid finder’s fees of $90,000 in cash to certain finders.
About Magnolia Colombia Limited:
Magnolia Colombia Limited is a Canadian independent oil exploration company.
For further information, please contact:
Jaime Lalinde, President & CEO
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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.