Friday, 23 November 2018 05:20 PM
CALGARY, AB / ACCESSWIRE / November 23, 2018 / Synstream Energy Corp. (the "Corporation") (TSXV:SHM) today announced that it is has completed the sale of 7,333,333 units of the Corporation ("Units") at a price of $0.015 per Unit for aggregate gross proceeds of $110,000. Each Unit consists of one common share in the capital of the Corporation ("Common Share") and one share purchase warrant ("Warrant"), each Warrant entitling the holder thereof to purchase an additional Common Share at an exercise price of $0.05 per share for a period of two years from the date of its issuance.
All of the Common Shares and Warrants issued pursuant to the private placement are subject to a four month hold period.
2,000,000 Units were sold to Johannes Kingma, the President, CEO and a director of the Corporation. Prior to closing, Mr. Kingma owned 17,160,705 Common Shares of the Corporation, or 47.1% of the then issued and outstanding Common Shares of the Corporation. As a result of the closing, Mr. Kingma now owns 19,160,705 Common Shares of the Corporation or 43.8% of the issued and outstanding Common Shares of the Corporation. In the future, depending on economic or market conditions or matters relating to the Corporation, Mr. Kingma may choose to either acquire additional securities or dispose of securities of the Corporation.
The Offering is considered a "Related Party Transaction" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Corporation relied upon the Financial Hardship exemption from the minority shareholder approval and valuation requirements set forth in that Instrument.
Pursuant to the bulletin of the TSX Venture Exchange dated April 7, 2014 entitled, "Discretionary Waivers of $0.05 Minimum Pricing Requirement", the Corporation has undertaken to seek shareholder approval, no later than the earlier of the Issuer's next annual general meeting and six months from the completion of the Offering, for a consolidation of the Common Shares of the Corporation on the basis of one new Common Share for at least every 3.333 Common Shares existing at the time of the share consolidation.
FOR FURTHER INFORMATION, PLEASE CONTACT:
David Pinkman
Director
(403) 863-6034
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Synstream Energy Corp.