Closing of $30 Million Rights Offering /NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS./
CALGARY, AB, Dec. 20, 2021 /CNW/ - Genesis Land Development Corp. (TSX: GDC) ("Genesis", the "Company" or "we") today announced the closing of its previously announced rights offering (the "Rights Offering") to eligible holders of its common shares (the "Common Shares") which expired at 5:00 p.m. (Toronto time) on December 17, 2021.
A total of 15,000,000 Common Shares were issued pursuant to the Rights Offering for aggregate gross proceeds of $30,000,000 million, comprising an aggregate of 14,088,948 Common Shares issued pursuant to the Rights Offering basic subscription privilege (of which approximately 11.3 million Common Shares were issued to directors and officers of Genesis and holders of 10% or more of the Common Shares, including Smoothwater Capital Corporation ("Smoothwater") and MWM Enterprises Limited ("MWM")) and an aggregate of 911,052 Common Shares issued pursuant to the Rights Offering additional subscription privilege (of which it is expected approximately 0.75 million Common Shares will be issued to directors and officers of Genesis and holders of 10% or more of the Common Shares, including Smoothwater and MWM, once the pro-rata allocation is determined). No stand-by commitment was entered into in connection with the Rights Offering.
Genesis intends to use all the proceeds of the Rights Offering, less offering expenses, to provide funds to further the development of existing projects, to pursue acquisition opportunities that may arise and to pay amounts due on previously announced acquisitions, minimizing the need for additional debt facilities and maintaining Genesis' strong financial position. No selling fees or commissions were paid in connection with the Rights Offering.
As of December 20, 2021, 56,863,335 Common Shares are issued and outstanding, of which approximately 30.35 million Common Shares (approximately 53.3%) are beneficially owned by Smoothwater and approximately 10.8 million Common Shares (approximately 19.0%) are beneficially owned by MWM.
Genesis is a land developer and residential home builder in the Calgary Metropolitan Area. The Company's common shares are listed on the Toronto Stock Exchange (TSX: GDC).