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VANCOUVER, June 17, 2014 /CNW/ - Zimtu Capital Corp. (TSXv: ZC) (FSE: ZCT1) (the "Company" or "Zimtu") announces that it has revised the terms of the private placement financing (the "Offering") it previously announced by News Release dated April 4, 2014.
The revised terms of the Offering provide for the issuance of up to 2,000,000 units (each, a "Unit") at a price of $0.50 per Unit for gross proceeds of up to $1,000,000. Each Unit will consist of one common share of the Company (each, a "Share") and one non-transferable common share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to acquire one Share (each, a "Warrant Share") at a price of $0.75 per Warrant Share for a period of 24 months from the closing of the Offering but subject to an acceleration clause.
In addition, the revised terms of the Offering provide that Secutor Capital Management Corporation ("Secutor") will not act as agent to the Offering. Although the Offering will be non-brokered, the Company may pay a finder's fees in accordance with the rules and policies of the TSX Venture Exchange (the "Exchange"), consisting of: (i) a cash finder's fee equal to up to 8% of the Units and (ii) the issuance of finder's warrants in an amount equal to up to 8% of the Units. Each finder's warrant shall entitle the holder to acquire one warrant share at a price of $0.50 per warrant share for a period of 24 months from the closing of the Offering.
All securities issued in the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Completion of the Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the Exchange.
The Company intends to use the proceeds from the Offering for prospect generation, company building and general working capital.
None of the securities sold in connection with the Offering will be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Zimtu Capital Corp.
Zimtu Capital Corp. is a public investment issuer that invests in, creates and grows natural resource companies thereby providing a way for shareholders to indirectly participate and profit in the public company building process. The Company also provides mineral property project generation and advisory services helping to connect companies to properties of interest.
Zimtu trades on the Exchange under the symbol "ZC" and the Frankfurt Stock Exchange under the symbol "ZCT1".
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
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.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that the company will successfully raise $1 million dollars; finders' commissions will be payable; securities will be issuable; expectations of management regarding use of proceeds of the Offering; closing conditions of the Offering; the expiry of hold periods for securities distributed pursuant to the Offering; Exchange approval of the proposed Offering; and any other future event related to the proposed Offering.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices; the Exchange may not approve the Offering; the proceeds of the Offering may not be used as stated in this press release; and that the parties may be unable to satisfy all of the conditions to closing the Offering. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements and other continuous disclosure documents filed under the Company's profile on SEDAR (http://www.sedar.com).
SOURCE: Zimtu Capital Corp.
For further information: For more information please visit the corporate website at http://www.zimtu.com or contact: Matt Sroka, Corporate Communications, Tel: 604.681.1568, Email: [email protected]