Prospect Park Capital Corp., is pleased to announce that it has successfully closed it previously announced non-brokered private placement (the “Offering”). Pursuant to the Offering, the Company raised gross proceeds of $998,512.46 through the issuance of 4,754,821 common shares of the Company at $0.21 per share. The net proceeds of the Offering will be used by the Company for working capital.
In connection with the Offering, the Company paid registered dealers and finders (i) an aggregate cash commission of $62,947.20, and (ii) non-transferable compensation options to purchase 299,748 common shares of the Company at an exercise price of $0.21 per share for a period of twenty-four (24) months from closing.
All three directors of the Company participated in the Offering accordingly such transactions are each a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transactions are exempt from the formal valuation requirements of MI 61-101 since none of the securities of the Company are listed on a stock exchange specified in section 5.5(b) thereof. The proposed transactions are exempt from the minority shareholder approval requirements of MI 61-101 since, at the time the transactions were agreed to, neither the fair market value of the transaction nor the fair market value of the consideration for the transaction, insofar as it involves interested parties, exceeded 25% of the Company’s market capitalization.
In addition, the Company has closed its previously announced securities for debt transactions with seven lenders, pursuant to which it issued an aggregate of 526,713 units of the Company at a deemed price of $0.21 per unit in satisfaction of $110,610.52 (including accrued interest) of indebtedness pursuant to promissory notes issued in January 2020. Each unit consists of one (1) common share of the Company and one (1) warrant with each warrant exercisable for one (1) common share of the Company at $0.28 per share for twenty-four (24) months from closing.
Including the issuance of shares detailed herein, there are now 10,782,358 common shares of the Company issued and outstanding.
All securities issued pursuant to the Offering and the securities for debt transactions are subject to a four-month hold.
For more information please contact: | James Greig |
Chief Executive Officer | |
Prospect Park Capital Corp. | |
Tel: (778) 788-2745 |