Vesta Capital Corp. Completes $500,600 Private Placement
September 12 2008 - 9:08AM
Marketwired
Vesta Capital Corp. ("Vesta" or the "Company"), (TSX VENTURE:
VES.P) a capital pool company, announced today further to its press
release dated August 20, 2008, on September 11, 2008, the Company
successfully completed its non-brokered private placement offering
(the "Offering") of 2,503,000 common shares of the Company (the
"Common Shares") at a price of $0.20 per Common Share for gross
proceeds to the Company of Cdn.$500,600. The Common Shares carry a
four-month hold period under Canadian securities laws from the date
of issuance. Vesta paid a finder's fee to PowerOne Capital Markets
Limited ("PowerOne") equal to 10 percent of the gross proceeds
raised in the Offering.
An aggregate of 2,000,000 Common Shares (the "Pinetree Shares")
issued pursuant to the Offering were purchased by Pinetree Income
Partnership ("Pinetree"), an arm's length party to the Company.
Pinetree is a wholly owned subsidiary of Pinetree Capital Ltd.
which owns 50% of the issued and outstanding shares in the capital
of PowerOne. The Pinetree Shares constitute approximately 32% of
the issued and outstanding capital of the Company subsequent the
Offering and as such, Pinetree has become a control person of the
Company. The Company obtained shareholder approval for the issuance
of the Pinetree Shares by way of written consent from shareholders
owning in the aggregate approximately 53% of the issued and
outstanding capital of the Company prior to completion of the
Offering.
The Pinetree Shares are subject to an escrow agreement (the
"Escrow Agreement") between Pinetree, the Company and its transfer
agent, Olympia Transfer Services Inc. Under the Escrow Agreement,
10% of the Pinetree Shares will be released from escrow on the
issuance of the TSX Venture Exchange Bulletin which is issued
following closing of the Company's qualifying transaction (the
"Initial Release") and an additional 15% will be released on the
dates 6 months, 12 months, 18 months, 24 months, 30 months and 36
months following the Initial Release. The Escrow Agreement can be
viewed and is available for download on the Company's SEDAR profile
(www.sedar.com).
Proceeds from the Offering will be used for general working
capital purposes.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Vesta Capital Corp. Harold Wolkin President, Chief
Financial Officer and Corporate Secretary (416) 485-0980
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