NEWS Crap Financing!!!Jul 21, 2010 14:55 ET
Vantex Arranges a Flow Through Financing for a Maximum of$1,700,000
LA PRAIRIE, QUEBEC--(Marketwire - July 21, 2010) - VantexResources Ltd. (the "Company")(TSX VENTURE:VAX) has entered into anagreement with Jones, Gable & Company Limited ("Jones, Gable") inrespect of a brokered private placement financing consisting of up to1,700 units (the "Units") at a purchase price of $1,000 per Unit toraise gross flow-through proceeds of up to $1,700,000 (the "PrivatePlacement") on a commercially reasonable effort agency basis.
The Units will consist of eight (8,000) flow-through commonshares at a price of
1.0 per share, two thousand (2,000) common sharesat a price of
.10 per share and five thousand (5,000) common sharepurchase warrant. Each whole warrant will entitle the holder to purchaseone additional common share in the capital of the Company for a periodof twelve months from the date of issuance, at a purchase price of
.15per share.
Proceeds of the Units will be used for general workingcapital purposes and to incur general exploration expenses inQuebec. The expenses will constitute Canadian exploration expenses andflow-through mining expenditures (as defined in the Income Tax Act(Canada)), which can be renounced to purchasers for the 2010 taxationyear.
Certain directors, officers and insiders of the Company mayparticipate in the Private Placement. The securities issued will besubject to a hold period of four months and one day.
Proceeds of the Private Placement will be used for thedevelopment of the Galloway-Pitchvein area. The Private Placement willbe subject to approval by the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation ServicesProvider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of thisrelease. This news release may contain forward-looking statementsincluding but not limited to comments regarding the timing and contentof upcoming work programs, geological interpretations, receipt ofproperty titles, potential mineral recovery processes, etc.Forward-looking statements address future events and conditions andtherefore, involve inherent risks and uncertainties. Actual results maydiffer materially from those currently anticipated in such statements.
Source: Guy R. Morissette, CEO
I sent the following open letter to VAX:
Dear all atVantex,
while we longtime shareholders appreciate your effortsfor securing sufficient funding for the company, the last two days' newsreleases have left a couple of us here in Germany doubting that you areactually acting in the best interest of us.
VAX shares havetraded steadily over 0,10 CAD for a whole month. To issue 17 millionshares, let alone flow-through, at such low levels as indicated by youtoday comes as a big surprise. Usually flow through shares are issued ata surplus to market levels as you give up your tax credits, if I recallsimilar financings form other companies, where I own shares. They allissued FTs at a premium, VAX strangely decided to issue them at a 30%discount, sad!
Similarly, incentive options are usually at levelshigher than the current share price, hence the term "incentive" options,but then I am not a native English speaker and might be missing thepoint, sarcasm is the only way I can react to this strangeinterpretation of "corporate governance, transparency andaccountability".
I just hope that the funds will be spent wiselyand we shareholders do not end up being diluted and reverse split' allover again!
Regards,