/NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA/
TORONTO, Jan. 23, 2018 /CNW/ - This press release is being disseminated as required by National Instrument 62‐103 The Early Warning System and Related Take Over Bids and Insider Reporting Issues in connection with the filing of an early warning report (the "Early Warning Report") regarding the acquisition of Gravitas Financial Inc (CSE: GFI) (the "Company") securities by Yuhua International Capital Inc. ("Yuhua Capital") of 5 Awesome Again Lane, Aurora, Ontario L4G 7Y7.
Yuhua Capital entered into a share purchase agreement with 2368798 Ontario Inc. ("2368798") and 2368799 Ontario Inc. ("2368799"), each of whom is an arms-length third party to Yuhua Capital, whereby it acquired a total of 4,000,000 common shares in the capital of the Company ("Common Shares") (i.e. 2,000,000 Common Shares from each of 2368798 and 2368799). Each of 2368798 and 2368799 is owned or controlled by a family member of an insider of the Company. The purchase price paid in each case was $0.05 per share, which amount was less than the closing market price on the date proceeding the trades.
Following the purchase of 4,000,000 Common Shares, Yuhua Capital and its affiliates now beneficially own 13,038,950 Common Shares, representing approximately 18.2% of the issued and outstanding voting securities of the Company on a fully‐diluted basis.
Following the sale of 2,000,000 Common Shares, 2368798 owns 6,750,000 Common Shares, representing approximately 9.4% of the issued and outstanding voting securities of the Company on a fully‐diluted basis. Following the sale of 2,000,000 Common Shares, 2368799 owns 6,750,000 Common Shares, representing approximately 9.4% of the issued and outstanding voting securities of the Company on a fully‐diluted basis. Given common ownership, 2368798 and 2368799 should be considered joint actors and they collectively own 13,500,000 Common Shares, representing approximately 18.8% of the issued and outstanding voting securities of the Company on a fully-diluted basis.
The securities were acquired for investment purposes and Yuhua Capital may increase or decrease its beneficial ownership or control depending on market or other conditions.
A copy of the Early Warning Report may be found on www.SEDAR.com.
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Gravitas Financial Inc.