TORONTO, Oct. 09, 2019 (GLOBE NEWSWIRE) — CR Capital Corp. (TSX-V: CIT) (“CR Capital”) announces it has completed a non-brokered private placement for aggregate gross proceeds of $47,500 (the “Offering”). The Offering consisted of the sale of 950,000 flow through units (the “FT Units”) at a price of $0.05 per FT Unit.
Each FT Unit consists of one (1) common share in the capital stock of CR Capital that is a “flow-through share” (a “FT Share”) within the meaning of the Income Tax Act (Canada) (the “Act”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one common share in the capital of CR Capital at a price of $0.075 per common share until the date which is two (2) years following the closing date of the Offering, whereupon the Warrants will expire.
CR Capital intends to use the net proceeds from the Offering to fund “Canadian exploration expenses” (within the meaning of the Act) on its properties. CR Capital will ensure that the proceeds received from the FT Units sold will be used to incur expenses which qualify as Canadian Exploration Expenses and Flow-Through Mining Expenditures for purposes of the Income Tax Act and will renounce such expenses with an effective date of no later than December 31, 2020.
The securities issued and issuable pursuant to the Offering will be subject to a four month and one day statutory hold period.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Related Party Transactions
Insiders of CR Capital have subscribed for 350,000 FT Units pursuant to the Offering. Any issuance of FT Units to an insider (“Insider Participation”) will be considered to be a “related party transaction” (within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”)). The Company has relied on exemptions from the “formal valuation” and “minority approval” requirements of MI 61-101 in respect of any Insider Participation.
Early Warning Reports
In connection with the Offering, Brian Howlett (CEO of CR Capital) acquired 200,000 FT Units and Eric Szustak (Director of CR Capital) acquired 150,000 FT Units.
Prior to the closing of the Offering, Mr. Howlett owned 900,000 common shares and 215,000 options to purchase common shares, representing 10.57% of CR Capital’s issued and outstanding common shares on a partially diluted basis. Immediately after completion of the Offering, Mr. Howlett owned 1,515,000 common shares and securities convertible into common shares, representing on a partially diluted basis 12.96% of CR Capital’s issued and outstanding common shares.
Prior to the closing of the Offering, Mr. Szustak owned 899,000 common shares and 140,000 options to purchase common shares, representing 9.93% of CR Capital’s issued and outstanding common shares on a partially diluted basis. Immediately after completion of the Offering, Mr. Szustak owned 1,339,000 common shares and securities convertible into common shares, representing on a partially diluted basis 11.58% of CR Capital’s issued and outstanding common shares.
The securities held by Mr. Howlett and Mr. Szustak are held for investment purposes, and depending on market and other conditions, they may from time to time in the future increase or decrease their respective ownership, control or direction over securities of CR Capital through market transactions, private agreements, or otherwise. In satisfaction of the requirements of the National Instrument 62-104 – Take-Over Bids and Issuer Bids and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, Early Warning Reports for Mr. Howlett and Mr. Szustak will be filed under CR Capital’s SEDAR profile at www.sedar.com.
For further information, please contact:
Mr. Brian Howlett, CPA, CMA
President & CEO
CR Capital Corp.
Cell: 647-227-3035