Wescan Energy closes $200,000 private placement
2021-03-15 12:10 MT - News Release
Mr. Greg Busby reports
WESCAN ENERGY ANNOUNCES CLOSING OF PRIVATE PLACEMENT
Wescan Energy Corp. has closed it previously announced non-brokered private placement of 4,000,000 common shares of the Corporation ("Common Shares") at a subscription price of $0.05 per Common Share for gross proceeds of $200,000 (the "Offering"). The Common Shares are subject to a four month hold from the date of issuance, expiring July 16, 2021. No commissions or finders fees were paid pursuant to the Offering.
Proceeds from the Offering will be used for the further development and workovers of certain wells located at the Company's core area in Provost, Alberta and general working capital purposes. The Company will also be reviewing well optimization projects including pipeline integrity schemes to provide additional production from certain wells that require workovers. The Offering is considered to be a "related party transaction" pursuant to Multilateral Instrument 61-101 as several insiders will be subscribing for shares pursuant to the Offering, but the Company is availing itself of the exemptions from obtaining a formal valuation and obtaining "majority of the minority" approval due to the exemptions available in Sections 5.5(a) and 5.7(1)(a) of said instrument. In addition, one of the subscribers will hold over 20% of the issued and outstanding Common Shares following the closing of the Offering but will not be a "control person" as such term is defined in the policies of the TSX Venture Exchange as there are several other large block shareholders of the Company and this shareholder is not part of management and has no special or superior rights over other shareholders.
We seek Safe Harbor.
