RediShred Capital Corp. announces completion of financing and acquisition of Proshred U.S. franchising business


    HALIFAX, March 18 /CNW Telbec/ - (TSXV: KUT.P) RediShred Capital Corp. a
capital pool company listed on the TSX Venture Exchange, confirmed that it has
completed the acquisition of the Proshred U.S franchising business for an
aggregate purchase price of $5.3 million (subject to customary adjustments).
The purchase price for Proshred was paid with a combination of $3.6 million in
cash and 3,269,230 common shares from treasury of RediShred at a deemed price
of $0.52 per Common Share. The acquisition is intended to serve as RediShred's
qualifying transaction pursuant to the policies of the TSXV and remains
subject to the approval of the TSXV. Final materials have been submitted to
the TSXV and it is anticipated that the common shares will resume trading on
or around March 20, 2008, subject to final TSXV review of the materials.
    In order to finance the purchase price, RediShred completed a private
placement of 9,615,384 common shares at a price of $0.52 per common share for
gross proceeds of $5 million, being the maximum sought. A portion of the
proceeds of the private placement not used to fund the purchase price for
Proshred will be used to pay for the costs and expenses associated with the
private placement and the acquisition, with the balance to be used to identify
potential future acquisitions and for general corporate purposes. Canaccord
Capital Corporation acted as the exclusive agent and financial advisor in
Canada in connection with the private placement.
    RediShred currently has 22,884,614 issued and outstanding common shares,
of which 9,264,230 common shares are being held in escrow subject to the terms
of an Escrow Agreement between RediShred, the escrow agent and certain
shareholders of RediShred. Pursuant to the Escrow Agreement, 10% of the
escrowed common shares will be released from escrow on the date of the TSXV
bulletin approving the qualifying transaction. The remaining escrowed common
shares will be released from escrow in equal tranches of 15% every six months
following the date of the TSXV bulletin approving the qualifying transaction.
    Additional information concerning the qualifying transaction is available
in RediShred's filing statement that was filed on SEDAR on February 29, 2008,
in accordance with the policies of the TSXV. The filing statement may be
viewed at
    With the acquisition, RediShred, through its wholly owned subsidiaries,
franchises the right in the United States and internationally outside of
Canada to sell on-site services for the destruction and disposal of documents
and other sensitive and confidential materials under the trademark      
PROSHRED(R). Its customers are primarily businesses and other organizations
that need to maintain the confidentiality of their proprietary information,
whether for competitive reasons, to comply with legal requirements or
otherwise. Redishred, through its wholly owned subsidiaries, allows business
customers and individual customers to witness the destruction of their
selected paper documents, computer disks and other media that contain
sensitive and confidential proprietary information. RediShred also intends to
seek out additional shredding businesses for acquisition or investment. It is
intended that additional shredding businesses would be re-branded with the
Proshred name.

    This press release contains forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of words such
as "plans", "expects" or "does not expect", "is expected", "estimates",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of RediShred to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Examples of such statements include the intention
that the acquisition will serve as the qualifying transaction of RediShred and
RediShred's intention to complete additional acquisitions. Actual results and
developments are likely to differ, and may differ materially, from those
expressed or implied by the forward-looking statements contained in this press
release. Such forward-looking statements are based on a number of assumptions
which may prove to be incorrect, including, but not limited to: the ability of
RediShred to satisfy the requirements of the TSXV with respect to the
acquisition, the private placement, the qualifying transaction; the level of
activity in the shredding business and the economy generally; consumer
interest in RediShred's services and products; competition; availability of
additional financing for future acquisitions and anticipated and unanticipated
costs. While RediShred anticipates that subsequent events and developments may
cause its views to change, RediShred specifically disclaims any obligation to
update these forward-looking statements except where required by law. These
forward-looking statements should not be relied upon as representing
RediShred's views as of any date subsequent to the date of this press release.
Although RediShred has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The factors identified above are
not intended to represent a complete list of the factors that could affect
RediShred. Additional factors are noted under "Risk Factors" in RediShred's
initial public offering prospectus dated August 21, 2007, a copy of which may
be obtained on the SEDAR website at
    Investors are cautioned that, except as disclosed in the filing statement
prepared in connection with the transaction, any information released or
received with respect to the transaction may not be accurate or complete and
should not be relied upon. Trading in the securities of a capital pool company
should be considered highly speculative.

    The TSX Venture Exchange Inc. has in no way passed upon the merits of the
    proposed transaction and has neither approved nor disapproved the
    contents of this press release.

For further information:

For further information: RediShred Capital Corp.: Mark J. MacMillan,
Vice President, Development, (902) 406-3347; John Prittie, President and CEO,
(416) 204-0071

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