/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
Trading: TSX Venture: LCN
VANCOUVER, Aug. 17 /CNW/ - Leisure Canada Inc. (LCN-TSX-V) (the
"Company") is pleased to announce that it has closed the brokered private
placement previously announced on July 13, 2009, issuing 71,582,535 units of
the Company (the "Units") at a price of $0.20 per Unit raising aggregate gross
proceeds of $14,316,507 (the "Offering"), of which $5,000,000 represents the
bought portion of the Offering and $9,316,507 represents the initial exercise
of the option. The Offering was brokered by a syndicate of underwriters co-led
by Dundee Securities Corporation and Paradigm Capital Inc., and including
Northern Securities (together, the "Underwriters"). The Underwriters have the
option to place up to an additional 28,417,465 Units for additional gross
proceeds of up to $5,683,493, at the sole discretion of the Underwriters
exercisable in whole or in part at any time up to August 27, 2009.
Each Unit comprises one common share (each a "Unit Share") and one-half
of one common share purchase warrant of the Company (each whole such purchase
warrant, a "Warrant"). Each Warrant is exercisable to acquire one additional
common share of the Company (each a "Warrant Share") at an exercise price of
$0.25 until December 31, 2010.
The Underwriters received a cash commission of $780,300. The Underwriters
were also issued 4,239,000 broker's warrants (the "Broker Warrants"). Each
Broker's Warrant will entitle the holder to acquire one unit of the Company
(each a "Broker Unit") at an exercise price of $0.20 until December 31, 2010.
The Unit Shares, the Warrants, the Warrant Shares and the securities
comprising the Broker Units will be subject to a four-month hold period in
Canada. Completion of the Offering is subject to receipt by the Company of all
necessary regulatory approvals.
The proceeds from the Offering will be used for advancement of the
Company's existing real estate development opportunities in Cuba and for
general corporate purposes.
The Company also announces the following changes to management which are
expected to occur concurrent with the closing of the Offering. Mr. Walter H.
Berukoff has resigned as President and Chief Executive Officer of the Company.
In his place, Mr. Robin Conners has been appointed as President and Chief
Executive Officer. Mr. Conners joined the Board of Directors of the Company on
July 2, 2009. Mr. Berukoff will remain as Executive Chairman and will continue
his involvement in the strategic management of the Company.
Leisure Canada is a leading developer of luxury resorts in Cuba, with
multiple properties currently under development, including five-star hotels
and championship golf courses.
Walter H. Berukoff
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.
This press release does not constitute an offer to sell or a solicitation
to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of
1933, as amended ("the U.S. Securities Act") or any state securities law and
may not be offered or sold in the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.
Except for the historical and present factual information contained
herein, the matters set forth in this news release, including words such as
"expects", "projects", "plans", "anticipates" and similar expressions, are
forward-looking information that represents management of Leisure Canada's
internal projections, expectations or beliefs concerning, among other things,
future operating results and various components thereof or the economic
performance of Leisure Canada. The projections, estimates and beliefs
contained in such forward-looking statements necessarily involve known and
unknown risks and uncertainties, which may cause Leisure Canada's actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things, those described in Leisure Canada's filings with the Canadian
securities authorities. Accordingly, holders of Leisure Canada shares and
potential investors are cautioned that events or circumstances could cause
results to differ materially from those predicted. Leisure Canada disclaims
any responsibility to update these forward-looking statements.
For further information:
For further information: Telephone: (604) 990-9599 or 1-888-600-8687,