TSX-V symbol: GRB.P
VANCOUVER, Sept. 12, 2011 /CNW/ - (TSX.V - "GRB") Greenbriar Capital Corp. (the "Company"), a capital pool company, is
pleased to announce that Shareholders have approved the proposed
Qualifying Transaction comprising the arms length acquisition of
approximately 160 acres of vacant land (the "Property") located in the
City of Tehachapi, California. The Company has advanced an additional
non-refundable deposit of $25,000 to Marks & Kilkenney, LLC (the
"Vendor"), a California limited liability company, of Woodland,
California and now expects to close the acquisition not later than
September 27, 2011 by paying to the Vendor the balance of the Purchase
Price of approximately US$990,000.
The acquisition of the Property will serve as the Company's Qualifying
Transaction for the purposes of the policies of the TSX Venture
Exchange (the "Exchange"). The Company has received conditional
approval to list as a Tier 2 issuer on the Exchange, subject to
confirmation that the Company meets the initial listing requirements of
a real estate issuer. Upon completion of the Qualifying Transaction,
the Company will be a "land development" company, whose business will
be to acquire raw parcels of land, conduct all necessary improvements
and development activities, then re-sell the land to real estate home
builders as zoned developable parcels with tentative tract maps. The
Company will complete the acquisition and conduct its operations in the
United States through its wholly-owned subsidiary, Greenbriar Capital
The Property is comprised of an aggregate of 160 acres divided into
approximately 689 total lots. The Property's existing use is as vacant
land, which land has been rezoned to permit the construction and
development of multi-family apartments and / or single family
residential homes. The City of Tehachapi is located in the Tehachapi
Pass, a mountain pass located in southern California. The pass connects
San Joaquin Valley to the Mojave Desert. It is located approximately 56
kilometres southeast of Bakersfield, California. With over 5,000 wind
turbines, the Tehachapi Pass area possesses the largest collection of
wind turbines in the world producing over 1,400 megawatts of electrical
Concurrently with the Qualifying Transaction, the Company will be
completing a non-brokered private placement (the "Offering") of up to
4,100,000 common shares at a price of $0.50 per common share for gross
proceeds of up to $2,050,000. The Company will use the net proceeds of
the Offering to pay the balance of the Purchase Price, to fund the
Company's business plan, to pay for the costs of the Qualifying
Transaction and for general working capital. The revised terms of the
Offering will result in a reduction in the amount of unallocated
working capital for the Company to approximately $600,000 from that
originally contemplated. Closing of the Offering is also expected to
occur on or about September 27, 2011.
PI Financial Corp. ("PI") is acting as the Company's sponsor for the
Qualifying Transaction. Pursuant to its engagement, the Company will
pay PI a sponsorship fee of $40,000 (plus HST). In addition, and as
compensation for advisory services to be provided in connection with
the Offering, the Company will pay PI a cash commission of 7% of the
gross proceeds of the Offering and further agrees to grant PI an option
to acquire such number of common shares of the Company equal to 7% of
the aggregate number of common shares sold pursuant to the Offering at
a price of $0.50 per common share for a period of two years from the
closing date of the Offering. In addition, the Company will pay PI the
customary costs and expenses associated with sponsorship transactions.
Directors elected at the Annual General Meeting are Jeffrey J.
Ciachurski, the Company's President, Chief Executive Officer, and
Secretary, V. John Wardlow, Claus Andrup, and Michael Boyd. Mr. Kevin
Craig is the Chief Financial Officer of the Company.
Completion of this transaction remains subject to a number of
conditions, including but not limited to, final Exchange acceptance and
completion of the Offering. There can be no assurance that the
transaction will be completed as proposed or at all. Trading in the
securities of a capital pool company prior to completion of its
Qualifying Transaction should be considered highly speculative.
Shareholders have also approved the transfer of the Company's listing to
the NEX Board of the Exchange in the event the Company does not
successfully conclude a Qualifying Transaction on or before October 6,
2011 or such earlier date as the Exchange may require.
The TSX Venture Exchange Inc. has in no way passed upon the merits of
the proposed transaction and has neither approved nor disapproved of
the contents of this press release.
ON BEHALF OF THE BOARD OF DIRECTORS
Jeffrey J. Ciachurski
President, Chief Executive Officer and Director
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
SOURCE Greenbriar Capital Corp.
For further information:
GREENBRIAR CAPITAL CORP.
Suite 1326 - 885 West Georgia Street
Vancouver, B.C. V6C 3E8