GREY:WSLFF - Post by User
Post by
Skymanon Feb 01, 2018 9:44am
315 Views
Post# 27478164
Shell Company Sold for $600,000
Shell Company Sold for $600,000It looks like existing shareholders will hold a residual interest of 20% in the new company (reduced to 10% fully diluted.) Here is the NR:
IGC RESOURCES INC. ANNOUNCES PRIVATE PLACEMENT AND SHARE CONSOLIDATION
IGC Resources Inc. will be consolidating its issued and outstanding common shares on the basis of one postconsolidation share for every 10 preconsolidation shares held.
Additionally, the company intends to complete a non-brokered private placement of 80 million preconsolidation units (eight million postconsolidation units) at a preconsolidation price of 0.75 cent (7.5 cents postconsolidation) per unit for gross proceeds of $600,000. Each unit will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at a preconsolidation price of one cent (0.10 cent postconsolidation) for a period of three years from the date of closing. Finders' fees may be paid in cash or common shares or a combination of cash and shares. All securities purchased under the private placement will be subject to a four-month-and-one-day hold period.
Proceeds from the private placement will be used to pay debt and for general working capital.