VANCOUVER, Aug. 27 /CNW/ - Rara Terra Capital Corp. (the "Company") (TSX-V: RTX.P), a capital pool company, is pleased to announce that on August 27, 2010, it successfully completed its initial public offering (the "IPO") of 3,000,000 common shares in the capital of the Company at a price of $0.10 per common share for gross proceeds of $300,000 (the "Proceeds").
Global Securities Corporation acted as agent (the "Agent") for the IPO. The Company has paid the Agent a cash commission equal to 10% of the Proceeds and granted non-transferable agent's warrants (the "Agent's Warrants") to purchase 300,000 common shares of the Company equal to 10% of the number of common shares sold through the IPO. The Agent's Warrants are exercisable for a period of 24 months from the date of listing on the TSX Venture Exchange (the "Exchange") at a price of $0.10 per common share. The Agent also received a corporate finance fee.
The Company also granted to its directors and officers options to acquire 450,000 common shares ("Shares") at a price of $0.10 per Share, for a period of five years from the date the Company's Shares are listed on the Exchange.
The Company is a capital pool company within the meaning of the policies of the Exchange. The Company has not commenced operations and has no assets other than cash.
The Company intends to use the net proceeds of the IPO to identify and evaluate potential Qualifying Transactions under the polices of the Exchange.
The Company expects its common shares will begin trading on the Exchange on August 31, 2010 under the trading symbol "RTX.P".
On behalf of the board of directors of
RARA TERRA CAPITAL CORP.
Per: /s/ Alexander Helmel
President, Chief Executive Officer
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's listing of its common shares on the Exchange. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them.
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 Echelon Petroleum Corp.
For further information: For further information: Alexander Helmel, Telephone: (604) 681-7822