VANCOUVER, BC, Jan. 4, 2021 /CNW/ - Belkorp Industries Inc. ("Belkorp") is pleased to announce that it has acquired 4,285,714 common shares (the "Private Placement Shares") of Founders Advantage Capital Corp. (TSXV: FCF) ("Founders Advantage"), on a private placement basis from the treasury of Founders Advantage, at a purchase price of $1.75 per Private Placement Share for an aggregate purchase price of approximately $7,500,000.
Immediately prior to the acquisition of the Private Placement Shares, Belkorp held 7,991,000 common shares of the Issuer, representing approximately 20.98% of the Issuer's issued and outstanding common shares (on a non-diluted basis). Upon the acquisition of the Private Placement Shares, Belkorp owns 12,276,714 common shares, representing approximately 26.31% of Founders Advantage's issued and outstanding common shares (on a non-diluted basis).
The Private Placement Shares were acquired from the treasury of Founders Advantage on a private placement basis, and were acquired for investment purposes. In a news release dated October 5, 2020, Founders Advantage announced an acquisition and a corporate reorganization. In order to fund a portion of the acquisition, Founders Advantage announced that it may issue up to an aggregate of 4,285,714 common shares, at a price per share of $1.75, for aggregate gross proceeds of approximately $7.5 million (the "Private Placement"). Belkorp subscribed for all of the common shares offered under the Private Placement. The Private Placement was completed on January 1, 2021.
Belkorp has a long-term view of the investment and does not intend at this time to acquire in the market any additional common shares of Founders Advantage, or dispose of any of the Private Placement Shares, but may in the future increase or decrease its shareholding in Founders Advantage, depending on market conditions, reformulation of plans and/or other relevant factors.
FOR FURTHER INFORMATION OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT REQUIRED BY SECURITIES LEGISLATION, PLEASE CONTACT:
Belkorp Industries Inc.
Suite 900, 1508 West Broadway
Vancouver, BC V6J 1W8
SOURCE Belkorp Industries Inc.
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