Proactive Investors - Run By Investors For Investors

MGX Renewables jumps closer to CSE listing as parent company MGX Minerals closes C$2 million financing

The financing is one of the final steps in the plan to spin out MGX Renewables into a separate entity
energy storage
Pictured is MGX Renewables' Energy Storage System

MGX Minerals Inc (CSE:XMG) (OTCMKTS:MGXMF) informed investors on Wednesday that its subsidiary MGX Renewables Inc is one step closer to listing on the Canadian Securities Exchange as an independent entity.

The Vancouver-based company said that it had closed a financing of just over C$2 million through the sale of 8 million subscription receipts at $0.25 per receipt. Subscription receipts will be converted into common shares once the transaction closes.

Shares of MGX Minerals gained 2% on Wednesday morning trading to C$0.26.

READ: MGX Minerals' renewables subsidiary to list on CSE

The proceeds from the offering will be held in escrow until the spinout takes place, and once certain other escrow release conditions are met. The spinout is expected to occur immediately following the closing of the plan of arrangement.

Under the transaction terms, each subscription receipt represents the right to automatically receive one unit of MGX Renewables, comprising of one MGXR share and one-half of one warrant, exercisable at $0.35 until November 30, 2020.

The warrants contain a clause that outlines MGXR’s option to accelerate the expiry date of the warrants if the volume-weighted average trading price of the shares exceeds $0.50 for 10 consecutive trading days.

The spinout is non-dilutive to MGX Minerals shareholders, the company said in a statement.

Spinout details

MGX Renewables is advancing zinc-air flow batteries with 20 patents granted so far designed for high capacity and long duration. They can be used in a wide range of energy storage applications in the fields of renewable energy, industrial backup power and grid-scale energy.

Last month the subsidiary received conditional approval to list on the Canadian Securities Exchange.

MGX Minerals is a diversified Canadian resource and technology company with interests in global advanced material, energy and water assets.

--Updates with share price--

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

View full XMG profile View Profile

MGX Minerals Inc. Timeline

Related Articles

Pacific American Coal's Elko coking coal project in Canada
January 10 2019
The company drilled the project in 2018 and is waiting on laboratory assays.
An output of FYI's process, 99.999% (5N) high-purity alumina
March 13 2019
The company’s share price is up on news of producing 5N (99.999%) high-purity alumina.
queensland
May 09 2019
Gold explorer's next move is to carry out geophysical surveys at its main prospect

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use