GEEKCO ANNOUNCES PRIVATE PLACEMENT AND DIRECTOR RESIGNATION
The Corporation intends to use the net proceeds from the Private Placement for general and working capital purposes.
Any intermediary can receive a cash commission of up to 7% of the aggregate gross proceeds of subscriptions for the Private Placement submitted by this intermediary; and a commission in the form of intermediary warrants for an equivalent number of up to 7% of the number of Units issued under the Private Placement from subscriptions submitted by this intermediary. Each intermediary warrant will have the same terms as the Warrants included in the Units.
All securities issued within the Private Placement are subject to a four-month and one-day resale restriction period from the closing date of the Private Placement. Closing of the Private Placement may occur in one or more tranches and is subject to the
The Corporation anticipates that certain "related parties" of the Corporation will participate in the Private Placement. The participation in the Private Placement of such "related parties" will constitute a "related party transaction" as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Corporation expects that the Private Placement will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the Corporation is listed on the TSXV and neither the fair market value of securities being issued to the related parties nor the consideration being paid by related parties will exceed 25% of the Corporation's market capitalization.
Resignation of Director
Furthermore, the Corporation also announces that it has accepted the resignation of Mr.
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