04:49 PM EST, 12/30/2024 (MT Newswires) -- Magnetic North Acquisition ( BKBLF ) after trade Monday announced it intends to complete a non-brokered private placement of Series A Preferred Shares of the company at a price of US$5.50 or C$7.90 per preferred share for gross proceeds of up to US$11 million or $15.8 million.

According to the offering, the closing is anticipated to occur on or about Jan. 9, 2025.

The company in a statement said it intends to use the net proceeds from the offering for investment activities and for general corporate purposes. The company added it has received and accepted an executed subscription agreement from a sole arm's length investor -- a U.S.-based private equity firm -- for approximately US$10 million of the offering.

The unnamed investor is "well known to senior management" as the company and its principals have worked together on various potential projects.

MNC currently has 1.75 million Preferred Shares issued and outstanding and expects to issue up to 2.5 million Preferred Shares under the offering, which will represent up to approximately 53.3% of the outstanding Preferred Shares following the completion of the offering.