TORONTO, July 3, 2013 /CNW/ - Further to the press release of Gravitas Financial Inc. (the "Corporation" or "Gravitas") with respect to the completion of Gravitas' business combination with Ubika Corp. (the "Transaction"), the following Holders (as hereinafter defined) acquired ownership and control over 35,000,000 common shares of Gravitas (the "Common Shares") as consideration for the sale by Ubika Corp. of all of its issued and outstanding shares:
| Name (collectively, the
| Viswanathan Karamadam
4088 Colonial Drive
| Vikas Ranjan
2955 Harvey Crescent
| 2368798 Ontario Inc. (2)
2955 Harvey Crescent
| 2368799 Ontario Inc. (3)
4088 Colonial Drive
|(1)||Based on 66,691,305 issued and outstanding common shares of Gravitas (the "Common Shares").|
|(2)||2368798 Ontario Inc. is a corporation owned by Vikas. Ranjan, the Executive Vice President and a director of Gravitas.|
|(3)||236899 Ontario Inc. is a corporation owned by Viswanathan Karamadam, the Executive Vice President and a director of Gravitas.|
Prior to the Transaction, Mr. Karamadam and Mr. Ranjan each owned 600,000 Common Shares (or 1,200,000 Common Shares in the aggregate), through a jointly-owned and controlled company called 2771906 Ontario Inc.
Following completion of the Transaction, Mr. Ranjan and Mr. Karamadam each hold the position of Executive Vice President of Gravitas and are currently board members of Gravitas.
The Holders received the Common Shares as consideration for the Transaction and for investment purposes, and may, in accordance with applicable securities laws, from time to time and at any time, acquire ownership of, or control or direction over, additional securities of Gravitas in the open market or otherwise, and they reserve the right to dispose of any or all of their Gravitas securities in the open market or otherwise, at any time and from time to time, and to engage in hedging or similar transactions with respect to Gravitas securities, the whole depending on market conditions, the business and prospects of Gravitas and other relevant factors.
The Common Shares are currently halt-traded and will remain halted until the Common Shares Gravitas are de-listed from the TSX Venture Exchange and listed on the Canadian National Stock Exchange (the "CNSX"). Gravitas expects that the listing of the Common Shares and commencement of trading on the CNSX will occur on or about July 8, 2013.
The following Common Shares are subject to an escrow agreement dated June 25, 2013 entered into among Gravitas, Computershare Trust Company of Canada, and certain other shareholders of the Corporation (the "Escrow Agreement"). Pursuant to the terms of the Escrow Agreement, 10% of the Common Shares will be released from escrow upon the issuance of an Exchange Bulletin issued by the CNSX announcing the resumption of trading.
The issuance of this news release is not an admission that an entity named in the news release owns or controls any described securities or is a joint actor with another named entity.
The Corporation also announced that it had entered into an Asset Purchase Agreement dated June 27, 2013 with an unrelated third party whereby Gravitas agreed to relinquish any claim it has to its Madina mining property located in the Republic of Guinea, to the original vendor. In exchange for such rights, Gravitas received a nominal amount of cash consideration and 1,240,000 common shares of Gravitas, which will be cancelled. Following the cancellation of such shares, there will be 65,451,305 issued and outstanding common shares of Gravitas.
ABOUT GRAVITAS FINANCIAL INC.
Gravitas is a public financial services, research and analytics company based in Toronto, Canada, which provides capital market services to private and public company clients. Through its portal www.smallcappower.com, it provides information to corporate and individual investors.
SOURCE: Gravitas Financial Inc.
For further information:
Gravitas Financial Inc.
Executive Vice President
Tel: (416) 605-7024