VendTek closes first tranche for $619,300 2012-08-07 22:34 AT - News Release
Ms. Samantha White reports
VENDTEK ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT OF UNITS
VendTek Systems Inc. has closed the first tranche of its previously announced private placement, wherein 5.63 million units were sold at a price of 11 cents per unit, to raise gross proceeds of $619,300. Each unit consists of one common share in the capital of the company and one-half warrant. Each full warrant is exercisable to acquire one additional common share for 18 months from the closing of the private placement at a price of 20 cents per common share.
Privinvest Offshore SAL (Holding), the company's largest shareholder, subscribed for 3.75 million units under the private placement. To the best of the company's knowledge, following the private placement, Privinvest Offshore holds 19,203,833 common shares, representing approximately 33.01 per cent of the company's issued and outstanding common shares, as well as 4,126,666 common share purchase warrants and a $750,000 principal amount convertible debenture of the company.
The company is continuing to seek investors to raise the rest of the private placement of up to $3-million described in its press release of July 19, 2012.
The net proceeds from the sale of the units will be used for general working capital purposes and to continue the company's expansion plans for its Brazilian operations. As the company's Brazilian subsidiary continues to increase the number of transactions that it processes, it needs to acquire additional inventory and will require greater working capital to support its growth initiatives.
The company paid finders' fees of $11,616 and 105,600 warrants in connection with the private placement; however, no finders' fee was payable in connection with Privinvest Offshore's participation in the private placement.
The private placement is subject to regulatory approval, and all securities issued in connection with private placement are subject to a four-month-and-one-day hold period under applicable securities laws, which will expire on Dec. 8, 2012.
We seek Safe Harbor.