|By Marketwired .||
|December 20, 2013 04:11 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 12/20/13 -- Canadian Quantum Energy Corporation ("Canadian Quantum" or the "Company") (TSX VENTURE: CQM) announced today that it has completed the previously announced non-brokered private placement offering of 2,400,000 common shares at a price of $0.05 per share, for gross proceeds of $120,000, subject to TSX Venture Exchange final approval. The common shares issued in connection with the offering are subject to a hold period that expires on April 21, 2014. The net proceeds from the offering will be used for general working capital purposes.
Douglas Brett, the President, Chief Executive Officer and a director of Canadian Quantum, subscribed for 200,000 common shares, a company controlled by Michael Koenig the Chief Financial Officer of Canadian Quantum, subscribed for 200,000 common shares and Robert Kulhawy, a director of Canadian Quantum, subscribed for 2,000,000 common shares under the private placement. Canadian Quantum has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available for the issuance of the common shares (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More Than 25% of Market Capitalization). No new insiders were created, nor has any change of control occurred, as a result of this private placement. No finder's fees were paid on the proceeds of the closing.
As Mr. Brett, the President, Chief Executive Officer and a director of Canadian Quantum, acquired 200,000 common shares under the private placement, Mr. Brett will own or control 7,457,421 common shares or approximately 23.01% of the total issued and outstanding common shares of Canadian Quantum and options to acquire 1,000,000 common shares. Assuming the exercise of such options, Mr. Brett would own or control 8,457,421 or approximately 25.32% of the total issued and outstanding common shares of Canadian Quantum. The purchase of the shares by Mr. Brett was made for investment purposes. Mr. Brett may increase or decrease his investment in Canadian Quantum depending on market conditions or any other relevant factors.
In addition, Canadian Quantum announced that it has appointed Kenway Mack Slusarchuk Stewart LLP as auditor of Canadian Quantum effective December 19, 2013. The resignation of Canadian Quantum's former auditor, MacKay LLP, was accepted by Canadian Quantum effective December 17, 2013.
About Canadian Quantum
Canadian Quantum is actively pursuing oil and gas opportunities in Western Canada and continues to hold various interests in approximately 174,000 gross acres covered by four permits in the St. Lawrence Lowlands, Quebec Utica Shale Play.
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.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.