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Red River Capital Corp. Announces Closing of Initial Public Offering

V.BTCW

Canada NewsWire

/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, July 26, 2018 /CNW/ - Red River Capital Corp. ("Red River Capital" or the "Corporation") (TSXV: XBT.P) is pleased to announce that it has successfully completed its initial public offering of 3,000,000 common shares of the Corporation ("Common Shares") at a price of $0.10 per Common Share for gross proceeds of $300,000 (the "Offering"). After completion of the Offering, the Corporation now has 5,500,000 Common Shares issued and outstanding.

Canaccord Genuity Corp. (the "Agent") acted as the agent for the Offering and in connection therewith, the Corporation granted the Agent warrants (the "Agent's Warrants") which entitle the Agent to purchase up to 300,000 Common Shares at an exercise price of $0.10 per Common Share. The Agent's Warrants will expire 24 months from the date the Common Shares are listed on the TSX Venture Exchange (the "Exchange"), which is July 25, 2018. The Agent also received a cash commission equal to 10% of the gross proceeds of the Offering, a corporate finance fee of $12,500 and was reimbursed for its legal fees and reasonable expenses.

Concurrent with the closing of the Offering, the Corporation also granted options to acquire an aggregate of 550,000 Common Shares at an exercise price of $0.10 per Common Share to the directors and officers of the Corporation, which options expire five years from the date of grant.

The Corporation is a "capital pool company" and intends to use the net proceeds of the Offering to identify and evaluate assets or businesses for acquisition with a view to completing a "Qualifying Transaction" under the policies of the Exchange. On July 23, 2018 the Exchange issued a bulletin approving the listing of the Common Shares (the "Exchange Bulletin"). As per the Exchange Bulletin the Common Shares commenced trading on the Exchange on July 25, 2018 and were immediately halted, pending the Exchange's receipt and review of the final Offering documentation. It is expected that the Common Shares will resume trading under the trading symbol "XBT.P" on July 30, 2018.

Investors are cautioned that trading in the securities of a capital pool company should be considered highly speculative.

Forward-Looking Information Cautionary Statement

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or the Corporation's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, the Corporation's stated use of proceeds and its expectation as to the resumption of trading of the Common Shares on the Exchange is forward-looking information. Actual results and developments may differ materially from those contemplated by this forward-looking information. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Red River Capital Corp.

View original content: http://www.newswire.ca/en/releases/archive/July2018/26/c6287.html

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