FINANCING / Meridian Energy Corp. Private Placement
MERIDIAN ENERGY CORPORATION
ASE, VSE SYMBOL: MDG
JANUARY 6, 1998
Meridian Energy Corp.: Brokered Private Placement
CALGARY, ALBERTA--MERIDIAN ENERGY CORPORATION (the "COMPANY") is
pleased to announce that it has completed its brokered private
placement of Special Warrants sponsored by Canaccord Capital
Corporation which was originally announced on December 1, 1997 and
modified on December 10, 1997. A total of 312 Special Warrants at
a price of $5000.00 per Special Warrant were subscribed for
representing aggregate gross subscription proceeds of $2,060,000.
The Special Warrants consist of 134 Flow-Through Special Warrants
and 178 Ordinary Special Warrants. Each Flow-Through Special
Warrant entitles the holder to acquire, for no additional
consideration, 10,000 Class A Common Flow-Through shares by virtue
of the Company's agreement to incur and renounce to the
subscribers certain Canadian exploration expenses (as defined in
the Income Tax Act) in respect thereof. Each Ordinary Special
Warrant entitles the holder to acquire, for no additional
consideration, 12,500 Common shares and 12,500 share purchase
warrants. Each share purchase warrant entitles the holder to
subscribe for one Class A Common share for a subscription price of
$0.50 per Class A Common share until December 31, 1998.
The Company has agreed to use commercially reasonable efforts to
qualify a prospectus in Alberta and British Columbia on or before
May 1, 1998 so that the Class A Common shares issued under the
Special Warrants will be free trading. Upon exercise of the
Special Warrants, a total of 4,565,000 Class A Common shares will
be issued. At that time, the Company will have total 12,276,750
Common shares issued and outstanding.
Proceeds from the private placement will be used to incur
intangible exploration and development costs, equipping costs and
for general working capital to fund the Company's exploration and
development program in the upcoming year. |
