NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES
CALGARY, April 30, 2018 /CNW/ - MG Capital Corporation
(the "Corporation") (TSXV: MGX.P) is pleased to announce
that it has successfully completed its initial public offering
of 2,500,000 common shares of the Corporation ("Common
Shares") at a price of $0.10 per
Common Share for gross proceeds of $250,000 (the "Offering"). After
completion of the Offering, the Corporation now has 5,510,000
Common Shares issued and outstanding.
Leede Jones Gable Inc. (the "Agent") acted as the agent
for the Offering and in connection therewith, the Corporation
granted the Agent non-transferable options (the "Agent's
Options") which entitle the Agent to purchase 250,000 Common
Shares at an exercise price $0.10 per
Common Share. The Agent's Options will expire 24 months from the
date the Common Shares were listed on the TSX Venture Exchange (the
"Exchange"), which was April 30,
2018. In connection with the Offering, the Agent also
received a cash commission equal to 10% of the gross proceeds of
the Offering, a corporate finance fee and was reimbursed for its
legal fees and reasonable expenses.
Concurrent with the closing of the Offering, the Corporation
also granted options to acquire an aggregate of 540,000 Common
Shares at an exercise price of $0.10
per Common Share to directors and officers of the Corporation,
which options expire five years from the date of grant.
The Corporation is a "capital pool company" and intends to use
the net proceeds of the Offering to identify and evaluate assets or
businesses for acquisition with a view to completing a "Qualifying
Transaction" under the policies of the Exchange. On April 26, 2018, the Exchange issued a bulletin
listing the Common Shares as of market open on April 30, 2018 and immediately halting trading
pending completion of closing (the "Exchange Bulletin"). The
Common Shares will resume trading under the trading symbol
"MGX.P" on May 3, 2018.
Investors are cautioned that trading in the securities of a
capital pool company should be considered highly speculative.
Forward-Looking Information Cautionary Statement
Certain statements contained in this press release constitute
forward-looking information. These statements relate to
future events or the Corporation's future performance. The
use of any of the words "could", "expect",
"believe", "will", "projected",
"estimated" and similar expressions and statements relating
to matters that are not historical facts are intended to identify
forward-looking information and are based on the Corporation's
current belief or assumptions as to the outcome and timing of such
future events. Actual future results may differ
materially. In particular, the Corporation's stated use of
proceeds and its expectation as to the resumption of trading of the
Common Shares on the Exchange constitute forward-looking
information. Actual results and developments may differ
materially from those contemplated by forward-looking
information. Readers are cautioned not to place undue
reliance on forward-looking information. The statement made in this
press release are made as of the date hereof. The Corporation
disclaims any intention or obligation to publicly update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.
SOURCE MG Capital Corporation
