Manitex Capital Inc. declares a dividend-in-kind of shares of Auxico Resources Canada Inc.

KIRKLAND, QC, Sept. 11, 2017 CNW Telbec/ - Manitex Capital Inc. ("Manitex") is pleased to announce that its board of directors has declared a special dividend-in-kind (the "Dividend") of 1,256,127 common shares of Auxico Resources Canada Inc., ("Auxico Shares") held by Manitex. The Dividend has a deemed price of $0.25 per Auxico Share and is payable on, or about, October 3, 2017 to holders of record of common shares of Manitex ("Manitex Shares") at the close of business on September 19, 2017 (the "Record Date").

The Dividend will be distributed on a pro rata basis. Based upon the number of Manitex Shares currently outstanding, and ignoring the effect of rounding for fractional interests, one Auxico Share will be paid under the Dividend for every ten Manitex Shares (or 0.1 Auxico Share per Manitex Share) held on the Record Date.

The distribution of the Auxico Shares forming the Dividend is exempt from the prospectus requirement pursuant to Regulation 45-106. After distribution of the Dividend, Manitex will continue to hold 983,873 Auxico Shares.

The Dividend is an "eligible dividend" for the purposes of the Income Tax Act (Canada) and corresponding provincial legislation and therefore the dividend will be taxable in the hands of Manitex shareholders. Manitex shareholders with questions regarding the tax treatment of dividends should consult with their own tax advisors or contact their local office of the Canada Revenue Agency and, where applicable, the provincial taxation authorities.

For more details on Auxico Resources Canada Inc., please consult the issuer's profile on SEDAR at www.sedar.com.

The distribution of the Dividend is subject to final acceptance by the TSX Venture Exchange.

Caution regarding forward-looking statements

This news release may contain certain forward-looking statements regarding the Company's expectations for future events. Such expectations are based on certain assumptions that are founded on currently available information. If these assumptions prove incorrect, actual results may differ materially from those contemplated by the forward-looking statements contained in this press release. Factors that could cause actual results to differ include, amongst others, uncertainty as to the final result and other risks. The Company disclaims any intention or obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, other than as required by security laws.

About Auxico Resources Canada Inc.

Auxico is a reporting issuer in the provinces of Quebec, Ontario, Alberta and British Columbia and is engaged in the acquisition, exploration and development of mineral properties. Auxico owns a 100% interest in the Zamora silver-gold property in Mexico (the "Property") and holds an exclusive license on patented technology in the recovery, separation and refining of precious metals. Auxico's current focus is to conduct its exploration program on the Property.

About Manitex Capital Inc.

Manitex Capital Inc. invests in promising emerging companies in diversified sectors including life sciences, cleantech and sustainable products/technologies. Manitex provides its portfolio companies with specialized corporate finance and advisory services including corporate strategy, mergers and acquisitions, public markets access and financing. Manitex currently has 12,561,276 common shares outstanding which are quoted for trading on the TSX Venture Exchange, symbol MNX.V.

TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

 

SOURCE Manitex Capital Inc.

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