Leisure Canada closes $18,224,507 brokered private placement



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

    TSX Venture: LCN
    

    VANCOUVER, Aug. 28 /CNW/ - Leisure Canada Inc. (LCN-TSX-V) (the
"Company") is pleased to announce the closing of the post-closing option (the
"Option") in respect of the brokered private placement previously announced on
July 13, 2009 and in respect of which an initial closing occurred on August
17, 2009. Pursuant to the Option, 19,540,000 units of the Company (the
"Units") were issued at a price of $0.20 per Unit raising gross proceeds of
$3,908,000. The Offering was brokered by a syndicate of underwriters co-led by
Dundee Securities Corporation and Paradigm Capital Inc., and including
Northern Securities (together, the "Underwriters").
    On August 17, 2009, the Company announced the closing of the issue of
71,582,535 Units for gross proceeds of $14,316,507. Pursuant to such closing
and the Option, the Company has raised a total of $18,224,507 through the
issuance of 91,122,535 Units.
    Each Unit comprises one common share of the Company (each a "Unit Share")
and one-half of one common share purchase warrant of the Company (each whole
such purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire
one additional common share of the Company (each a "Warrant Share") at an
exercise price of $0.25 until December 31, 2010.
    Pursuant to the closing of Units under the Option, the Underwriters
received a cash commission of $48,180 and 245,500 broker's warrants (the
"Broker Warrants"). Each Broker's Warrant will entitle the holder to acquire
one Unit of the Company (each a "Broker Unit") at an exercise price of $0.20
until December 31, 2010.
    The Unit Shares, the Warrants, the Warrant Shares and the securities
comprising the Broker Units will be subject to a four-month hold period in
Canada. Completion of the Offering is subject to receipt by the Company of all
necessary regulatory approvals.
    Walter Berukoff, Executive Chairman stated, "The raising of over $18
million represents a significant milestone in the history of Leisure Canada.
This financing confirms our shareholders confidence with the largest equity
financing in the Company's 23 year history." Robin Conners, the Company's
newly appointed President and Chief Executive Officer added, "We are pleased
with the success of this placement in a challenging financial market. The
proceeds will provide the critical capital for the Company to realize upon the
enormous potential of its developments in Cuba."
    The proceeds from the Offering will be used for advancement of the
Company's existing real estate development opportunities in Cuba and for
general corporate purposes.
    The Company also announces the grant of incentive stock options to
purchase up to 1,800,000 common shares of the Company at an exercise price of
$0.25 per share to certain directors, officers, and consultants of the
Company. The stock options expire on August 28, 2019. The grant is made
pursuant to the Company's stock option plan and is subject to regulatory
approval.
    Leisure Canada is a leading developer of luxury resorts in Cuba, with
multiple properties currently under development, including five-star hotels
and championship golf courses.

    
    Walter H. Berukoff
    Executive Chairman

    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.
    

    This press release does not constitute an offer to sell or a solicitation
to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of
1933, as amended ("the U.S. Securities Act") or any state securities law and
may not be offered or sold in the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available

    
    Cautionary language:
    --------------------
    
    Except for the historical and present factual information contained
herein, the matters set forth in this news release, including words such as
"expects", "projects", "plans", "anticipates" and similar expressions, are
forward-looking information that represents management of Leisure Canada's
internal projections, expectations or beliefs concerning, among other things,
future operating results and various components thereof or the economic
performance of Leisure Canada. The projections, estimates and beliefs
contained in such forward-looking statements necessarily involve known and
unknown risks and uncertainties, which may cause Leisure Canada's actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things, those described in Leisure Canada's filings with the Canadian
securities authorities. Accordingly, holders of Leisure Canada shares and
potential investors are cautioned that events or circumstances could cause
results to differ materially from those predicted. Leisure Canada disclaims
any responsibility to update these forward-looking statements.





For further information:

For further information: Telephone: (604) 990-9599 or 1-888-600-8687,
E-mail: info@leisurecanada.com

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LEISURE CANADA INC.

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