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CALGARY, July 26, 2018 /CNW/ - Red River Capital
Corp. ("Red River Capital" or the "Corporation")
(TSXV: XBT.P) is pleased to announce that it has
successfully completed its initial public offering of
3,000,000 common shares of the Corporation ("Common Shares")
at a price of $0.10 per Common Share
for gross proceeds of $300,000 (the
"Offering"). After completion of the Offering, the
Corporation now has 5,500,000 Common Shares issued and
outstanding.
Canaccord Genuity Corp. (the "Agent") acted as the agent
for the Offering and in connection therewith, the Corporation
granted the Agent warrants (the "Agent's Warrants") which
entitle the Agent to purchase up to 300,000 Common Shares at an
exercise price of $0.10 per Common
Share. The Agent's Warrants will expire 24 months from the date the
Common Shares are listed on the TSX Venture Exchange (the
"Exchange"), which is July 25,
2018. The Agent also received a cash commission equal to 10%
of the gross proceeds of the Offering, a corporate finance fee of
$12,500 and was reimbursed for its
legal fees and reasonable expenses.
Concurrent with the closing of the Offering, the Corporation
also granted options to acquire an aggregate of 550,000 Common
Shares at an exercise price of $0.10
per Common Share to the directors and officers of the Corporation,
which options expire five years from the date of grant.
The Corporation is a "capital pool company" and intends to use
the net proceeds of the Offering to identify and evaluate assets or
businesses for acquisition with a view to completing a "Qualifying
Transaction" under the policies of the Exchange. On July 23, 2018 the Exchange issued a bulletin
approving the listing of the Common Shares (the "Exchange
Bulletin"). As per the Exchange Bulletin the Common Shares
commenced trading on the Exchange on July
25, 2018 and were immediately halted, pending the Exchange's
receipt and review of the final Offering documentation. It is
expected that the Common Shares will resume trading under the
trading symbol "XBT.P" on July 30,
2018.
Investors are cautioned that trading in the securities of a
capital pool company should be considered highly speculative.
Forward-Looking Information Cautionary Statement
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or the Corporation's future performance. The use of any
of the words "could", "expect", "believe",
"will", "projected", "estimated" and similar
expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the Corporation's current belief or
assumptions as to the outcome and timing of such future events.
Actual future results may differ materially. In particular,
the Corporation's stated use of proceeds and its expectation as to
the resumption of trading of the Common Shares on the Exchange is
forward-looking information. Actual results and developments may
differ materially from those contemplated by this forward-looking
information. The Corporation disclaims any intention or
obligation to publicly update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as may be expressly required by applicable
securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.
SOURCE Red River Capital Corp.