TORONTO, ONTARIO – GC-Global Capital Corp. (“Global Capital” or the “Company”) (TSX Venture Exchange “GDE.A”) is pleased to announce that it has closed its previously announced non-brokered private placement of 5,375,000 subordinate voting shares at a price of $0.40 per share for total gross proceeds of $2,150,000. The proceeds of the financing will be used for a secured convertible debenture transaction that the Company expects to announce the details of soon after closing of the private placement financing. The subordinate voting shares issued will be subject to a four-month hold period.
Subscriptions by insiders of the Corporation accounted for $300,000 of the gross proceeds of the Offering. Participation by the insiders in the Offering is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) by virtue of the exemptions contained in Sections 5.5(b) and 5.7(1)(a) of MI 61-101.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.
Stock Option Grant
The Company also wishes to announce that, on June 5, 2014, the Board of Directors approved the issuance of 230,000 options to non-executive directors. The exercise prices of the options are $0.40. The options are subject to a four-month hold period and have a term of ten years. The 230,000 nonexecutive directors’ options vest after the four-month hold period. The option plan is designed to give each optionee an interest in preserving and maximizing shareholder value in the longer term.
About GC-Global Capital Corp
Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global Capital’s website at www.gcglobalcapital.ca .
This news release contains certain “forward looking statements”. Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.