MISSISSAUGA, ON, Dec. 7, 2021 /CNW/ - Redishred Capital Corp.
("Redishred" or the "Company") (TSXV: KUT) is pleased to announce
that it has entered into an agreement with Acumen Capital Finance
Partners Limited as Sole Bookrunner and Co-Lead Underwriter along
with Echelon Capital Markets as Co-Lead Underwriter, on behalf of a
syndicate of underwriters (collectively, the "Underwriters"), where
the Underwriters have agreed to purchase, on a bought deal basis,
8,525,000 common shares of Redishred ("Common Shares") at a price
of $0.88 per Common Share (the
"Offering Price") for gross proceeds to the Company of
approximately $7,502,000 (the
"Offering").
The Company has granted the Underwriters an over-allotment
option exercisable at any time up to 30 days following the closing
of the Offering, to purchase up to an additional 1,278,750 Common
Shares at the Offering Price. In the event that the over-allotment
option is exercised in full, the gross proceeds of the Offering
will be approximately $8,627,300.
The Company expects to use the net proceeds from the Offering to
conduct acquisitions, repay indebtedness related to past
acquisitions and for general corporate purposes.
The Common Shares will be offered by way of a short form
prospectus supplement, qualifying the Common Shares for
distribution in all of the Provinces of Canada, excluding Quebec, and in the
United States by way of private placement pursuant to
available exemptions from the registration requirements of the
United States Securities Act of 1933, as amended, and
outside of Canada and the United States on a private placement or
equivalent basis.
The closing of the Offering is scheduled to occur on or about
December 23, 2021, and is subject to
customary closing conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the
TSX Venture Exchange and the securities regulatory authorities, and
the satisfaction of other customary closing conditions.
About Redishred
Redishred Capital Corp. is the owner of the PROSHRED® trademarks
and intellectual property in the United
States and Internationally. PROSHRED® shreds and recycles
confidential documents and proprietary materials for thousands of
customers in the United States in
all industry sectors. PROSHRED® is a pioneer in the mobile document
destruction and recycling industry and has the ISO 9001:2015
certification. It is PROSHRED®'s vision to be the 'system of
choice' and provide shredding and recycling services on a global
basis. PROSHRED® currently services over 40 markets in the United States. Redishred Capital Corp.
grants PROSHRED® franchise businesses in the United States and by way of license
arrangement in the Middle East.
Redishred Capital Corp. also operates fifteen corporate shredding
businesses directly. The Company's plan is to grow its business by
way of both franchising and the acquisition and operation of
document destruction businesses that generate stable and recurring
cash flow through a scheduled client base, continuous paper
recycling and concurrent unscheduled shredding service.
Note: The TSX Venture Exchange has neither approved nor
disapproved of the information contained herein.
Caution Regarding Forward Looking Information:
Certain statements in this press release may constitute
"forward-looking" statements and information, which involve known
and unknown risks, uncertainties, and other factors that may cause
actual results, performance, or achievements to be materially
different from any future results, performance, or achievements
expressed or implied by such forward-looking statements. When used
in this document, such statements include such words as "may,"
"will," "expect," "believe," "plan," and other similar terminology.
These statements reflect management's current expectations
regarding future events and operating performance and speak only as
of the date of this document. There should not be an expectation
that such information will in all circumstances be updated,
supplemented, or revised whether as a result of new information,
changing circumstances, future events, or otherwise.
SOURCE RediShred Capital Corp.