MINNESOTA, June 4 /CNW/ - Rapid Brands Inc. (formerly RDS Acquisition
Corp.) ("Rapid Brands") is pleased to announce that it has completed its
Qualifying Transaction with Rapid Refill Ink International Corp. ("Rapid
In addition, Rapid Refill completed a financing May 31, 2007, raising
gross proceeds of US$4.5 million through the sale of 2,000,000 common shares.
Blackmont Capital Inc. acted as Agent in connection with the financing.
Under the Qualifying Transaction, Rapid Brands undertook a three-corner
merger with Rapid Refill and a wholly-owned subsidiary of Rapid Brands. In the
merger, each issued share of Rapid Refill, other than those held by principal
shareholders, was exchanged for one common share of Rapid Brands. Each issued
share of Rapid Refill held by a principal shareholder was exchanged for one
class A convertible restricted share of Rapid Brands.
As a result of the financing and the Qualifying Transaction, Rapid Brands
has an aggregate of 5,644,999 issued common shares that will be listed and
posted for trading on the TSX Venture Exchange at a time designated by the
Exchange. In addition, Rapid Brands has an aggregate of 4,710,000 Class A
shares issued and outstanding. In connection with the financing, the Agent
received a cash commission and an aggregate of 140,000 compensation options
(each entitling the holder to purchase one common share of Rapid Brands on a
post-transaction basis at US$2.25 per share for a period of 18 months).
On May 18, 2007, Rapid Brands filed on SEDAR a filing statement dated May
17, 2007 in connection with the Qualifying Transaction. Investors are referred
to Rapid Brand's news releases of April 23, 2007 and May 22, 2007 for further
information about the Qualifying Transaction with Rapid Refill.
Investors are cautioned that, except as disclosed in the Filing Statement
filed on SEDAR in connection with the Qualifying Transaction, any information
released or received with respect to the Qualifying Transaction may not be
accurate or complete and should not be relied upon.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
About Rapid Brands Inc.
Rapid Brands Inc. is a corporation continued under the laws of British
Columbia. Its wholly-owned subsidiary, Rapid Refill Corp., is a U.S.-based
franchisor in the fast-growing ink-jet and laser toner cartridge refill
industry. The company refills and sells low-cost, environmentally friendly
cartridges for printers, fax machines, copiers and all-in-one machines for
business and consumer customers. Rapid Refill Corp. sells franchises to
operate stores that can process and refill ink or toner cartridges in addition
to selling new compatible and office equipment manufacturer inkjet and laser
toner cartridges. There are currently 92 stores open in 27 states. Franchisees
operate the stores under the trademark "Rapid Refill Ink".
For further information:
For further information: Stephen Hockett, Chief Executive Officer, Rapid
Refill, Tel: (952) 238-1000