Shoreline Energy (SEQ-T) closes first tranche, adopts bylaw
May 3rd, 2013 - News Release
Shoreline Energy Corp. has closed the first tranche of its previously announced brokered private placement financing, resulting in gross proceeds to Shoreline of $2.23-million through the issuance of 557,500 common shares of the corporation, issued on a flow-through basis pursuant to the Income Tax Act (Canada) at a subscription price of $4 per flow-through share. Casimir Capital Ltd. acted as agent on the financing. In connection with the closing of the first tranche of the financing, the agent received a cash commission equal to 7 per cent of the gross proceeds raised under the financing. The next tranche of the financing is anticipated to close next week.
The flow-through shares issued under the financing are subject to a four-month-and-one-day resale and transfer restriction under applicable securities laws. The net proceeds of the financing will be used as previously announced in the corporation's press release dated April 17, 2013.
The corporation also announces that the board of directors of the company has approved the adoption of an advance notice bylaw.
Among other things, the bylaw fixes a deadline by which shareholders must submit a notice of director nominations to the company in order for such nominations to be proposed at annual or special meetings of shareholders where directors are to be elected. Further, the bylaw sets forth the information that a shareholder must include in the notice for it to be valid.
In the case of an annual meeting of shareholders, notice to the company must be made not less than 30 or more than 65 days prior to the date set for the annual meeting (except that, if the meeting is called for a date that is fewer than 50 days after the first public filing or announcement of the date of the meeting, the notice must be delivered no more than 10 days after the date of that public filing or announcement). The bylaw is effective immediately, and, in accordance with the Business Corporations Act (Alberta), shareholders of the company will be asked to confirm the bylaw at the upcoming annual and special meeting of shareholders scheduled to be held on June 13, 2013. A copy of the bylaw will be included in the proxy materials to be mailed to shareholders in connection with the June 13, 2013, meeting and filed under the company's profile at SEDAR.
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