TORONTO, June 4 /CNW/ - TriNorth Capital Inc. ("TriNorth" or the "Corporation", TSXV:TRT) is pleased to announce that Feronia Inc. ("Feronia"), one of its portfolio holdings, has closed $5,000,000 of private placement financing into escrow in addition to the $16,778,010 private placement announced on May 25, 2010, for aggregate gross proceeds of $21,778,010 to fund future growth of its palm oil plantations and arable farming interests in the Democratic Republic of Congo.
As previously announced, Feronia has also entered into a definitive acquisition agreement with G.T.M. Capital Corporation ("GTM") and its principal shareholders, which sets forth the terms and conditions pursuant to which GTM will acquire all of the issued and outstanding common shares in the capital of Feronia (the "Proposed Transaction").
As a result of the Proposed Transaction, the holders of the issued and outstanding common shares in the capital of Feronia (the "Feronia Common Shares") will receive one common share in the capital of GTM for each one Feronia Common Share. The Proposed Transaction is intended to result in a reverse take-over of GTM by Feronia and its shareholders.
In connection with the Proposed Transaction, GTM will apply to list its common shares on the TSX Venture Exchange (the "Exchange"). Listing will be subject to GTM fulfilling all of the listing requirements of the Exchange. The money raised through the private placement will remain in escrow until the listing application has been approved.
The Proposed Transaction is subject to compliance with all necessary regulatory approvals and certain other terms and conditions. A comprehensive press release with further particulars relating to the Proposed Transaction will follow in accordance with the policies of the Exchange.
ABOUT TRINORTH CAPITAL INC.
TriNorth is a Canadian-based investment company that aims to invest in a diversified portfolio of companies to generate long-term capital growth for shareholders. TriNorth takes an active interest in its investee companies from the earliest stages, providing strategic and financial counsel, support and direction to assist in their growth and success. TriNorth's investment strategy includes structuring and initiating deals focused on particular resources, themes or regions as well as launching the development of businesses in select industries by providing assistance with the hiring of management teams, providing seed capital and facilitating IPOs.
ABOUT FERONIA INC.
Feronia Inc. is a large-scale commercial farmland and plantation operator in the Democratic Republic of the Congo (DRC). The Company uses modern agricultural techniques and practices to operate and develop its Palm Oil Plantation and Arable Farming business divisions. Feronia believes in the immense agriculture potential of the DRC for high-quality food stuffs and edible oils given its ideal weather, excellent soil and highly skilled and experienced workforce. Feronia's management team is comprised of senior agriculturalists with extensive experience in managing both plantations and large-scale mechanized farming operations in frontier and emerging markets. Feronia is strongly committed to sustainable agriculture, environmental protection and providing support for local communities. For more information please see, www.feronia.com.
ABOUT G.T.M. CAPITAL CORPORATION
GTM is a reporting issuer in the provinces of Alberta, British Columbia and Saskatchewan. At present, it does not own any assets other than cash or cash equivalents. To date, GTM has not conducted any active business operations.
Completion of the proposed transaction is subject to a number of conditions, including but not limited to Exchange acceptance and shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the proposed transaction, any information released or received with respect to the proposed transaction may not be accurate or complete and should not be relied upon.
The Exchange has not passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Corporation assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in the Corporation's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
SOURCE TriNorth Capital Inc.
For further information: For further information: Catherine Stretch, (416) 362-6283, Corporate Secretary, TriNorth Capital Inc., Toronto, Canada, email@example.com, www.trinorthcapital.com; Ravi Sood, Director, TriNorth Capital Inc., (416) 362-4999, firstname.lastname@example.org, www.trinorthcapital.com