MAGNETIC NORTH ACQUISITION CORP. ANNOUNCES A NON-BROKERED PRIVATE PLACEMENT OF UP TO US$11.0 MILLION (CDN$15.8 MILLION)

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CALGARY, AB and TORONTO, Dec. 30, 2024 /CNW/ - Magnetic North Acquisition Corp. (TSXV: MNC) ("Magnetic North" or the "Company") is pleased to announce that it intends to complete a non-brokered private placement of Series A Preferred Shares of the Company ‎("Preferred Shares‎") at a price of US$5.50 or CAD$7.90 per Preferred Share for gross proceeds of up to ‎US$‎11,000,000 or CAD$15,800,000 (the "Offering"). Closing is anticipated to occur on or about January 9th, 2025. The Company intends to use the net proceeds from the Offering for investment activities and for general corporate purposes‎.

Magnetic North Acquisition Corp. Logo (CNW Group/Magnetic North Acquisition Corp.)
Magnetic North Acquisition Corp. Logo (CNW Group/Magnetic North Acquisition Corp.)

The Company has received and accepted an executed subscription agreement from a sole arm's length investor for approximately USD$10.0 million of the Offering. The investor is a US-based private equity firm that was founded in 2020 and specializes in innovative impact investments. The investor is well known to senior management as the Company and its principals have worked together on various potential projects.

Completion of the Offering is subject to several conditions, including receipt by the Company of the subscription funds from the investors and TSX Venture Exchange ("TSXV") final acceptance. The Company has not received documentation indicating that subscription funds are available but expects to receive such documentation prior to the closing of the Offering. There can be no assurance that the Offering will be completed as proposed or at all.

The Company currently has ‎1,750,825 ‎Preferred Shares issued and outstanding and expects to issue up to ‎2,000,000‎ Preferred Shares under the Offering, which will represent up to approximately 53.3% of the outstanding Preferred Shares following the completion of the Offering. The Preferred Shares issued pursuant to the Offering will be subject to a hold ‎period of four months plus one ‎day from the date of closing of the Offering in accordance with securities laws.‎

The Preferred Shares are non-voting and non-convertible and are listed on the TSXV under the symbol "MNC.PN.A". For more information on the terms, rights and privileges of the Preferred Shares, please see the management information ‎circular of the ‎Company dated September 23, 2020 available on ‎the Company's SEDAR+ profile at www.sedarplus.ca‎.