HALIFAX, March 24, 2016 /CNW/ - Fortune Bay Corp.
("Fortune Bay") (TSX: FOR) Fortune Bay Corp. is pleased to announce
that it has closed the previously announced non-brokered private
placement to raise $2,300,000 through
the issuance of 7,665,550 common shares. The common shares
issued in connection with the private placement are subject to a
four-month hold period that will expire on July 24, 2016.
The proceeds from the private placement will be used to fund the
previously announced transaction with Kneat Solutions Limited
("Kneat") and provide adequate working capital to list a newly
formed exploration company ("Spinco") that is expected to be listed
on the TSX Venture Exchange.
The Chief Executive Officer of the Company subscribed for an
aggregate of 1,000,000 common shares.
The Board of Fortune Bay has also approved the issuance of a
Series A Secured Debenture to Kneat of €1,000,000 ("the Debenture")
with an interest rate of 7.25% per annum and a maturity date of
July 1, 2016. In the event the
Arrangement is completed prior to the July
1, 2016, the Debenture will become an intercompany loan
between Fortune Bay and Kneat. In addition, the required
Fortune Bay net cash balance of $8.2
million due on closing will be reduced by the amount of the
Debenture plus all accrued interest.
About Fortune Bay Corp.
Fortune Bay is engaged in the exploration and potential
development of two primary mining projects: the Goldfields project
and the Ixhuatán project. The Goldfields project is a property
located in northern Saskatchewan
and consists of two gold deposits: the Box deposit and the Athona
deposit. The Ixhuatán project is located in the northern Chiapas
State in Mexico.
About Kneat Solutions Limited
Kneat, headquartered in Limerick, Ireland, is in the business of developing and
marketing the Kneat Gx platform software that meets the stringent
pharmaceutical industry regulatory requirements for all forms of
validation, equipment changeover management, risk lifecycle
management, change control and much more. It has been
designed to allow the customer to configure and manage many
regulated data and document processes in a paper-less
environment.
Cautionary and Forward-Looking Statements
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
information" within the meaning of applicable Canadian securities
laws. Such forward-looking information, includes, but is not
limited to, the approval of the Arrangement by the respective
shareholders of Fortune Bay and Kneat, the listing of Spinco on the
TSX Venture Exchange, the TSX approval of the private placement and
the ability of Kneat to execute on its business plan and growth
strategy. While such forward-looking statements are expressed by
Fortune Bay, as stated in this release, in good faith and believed
by Fortune Bay to have a reasonable basis, they are subject to
important risks and uncertainties. As a result of these risks and
uncertainties, the events predicted in these forward-looking
statements may differ materially from actual results or events.
These forward-looking statements are not guarantees of future
performance, given that they involve risks and uncertainties.
Fortune does not undertake any obligation to release publicly
revisions to any forward-looking statement, except as may be
required under applicable securities laws. Investors should not
assume that any lack of update to a previously issued
forward-looking statement constitutes a reaffirmation of that
statement. Continued reliance on forward-looking statements is at
investors' own risk.
SOURCE Fortune Bay Corp.