VLU.P Value Capital Trust

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Value Capital Trust (“Value Capital” or the “Trust”) (TSXV:VLU.P) is pleased to announce that it has successfully completed its initial public offering of 5,000,000 trust units of the Trust (“Units”) at a price of $0.10 per unit for gross proceeds of $500,000 (the “Offering”). After completion of the Offering, the Trust now has 11,600,000 Units issued and outstanding.

Echelon Wealth Partners Inc. (the “Agent”) acted as the agent for the Offering and in connection therewith, the Trust granted the Agent warrants (the “Agent’s Warrants”) which entitle the Agent to purchase 500,000 Units at an exercise price of $0.10 per Unit. The Agent’s Warrants will expire 24 months from the date the Units are listed on the TSX Venture Exchange (the “Exchange”). The Agent also received a cash commission equal to 10% of the gross proceeds of the Offering.

The completion of the Offering marks the first CPC income trust IPO in Canada. Thane Ritchie, one of the individuals who founded and organized the Trust, commented “We are very excited to have been involved with the first CPC income trust IPO in Canada and we look forward to exploring Qualifying Transaction opportunities.”

Concurrent with the closing of the Offering, the Trust also granted options to acquire an aggregate of 1,021,180 Units at an exercise price of $0.10 per Unit to the trustees and officers of the Trust, which expire five years from the date of grant.

The Trust 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. The Exchange has conditionally approved the listing of the Units and the Trust has made an application to the Exchange for final listing approval. It is expected that the Units will commence trading on the Exchange under the trading symbol “VLU.P”.

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 Trust’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 Trust’s current belief or assumptions as to the outcome and timing of such future events.  Actual future results may differ materially.  In particular, the Trust’s stated expectation as to the listing of the Units on the Exchange is forward-looking information.  Actual results and developments may differ materially from those contemplated by this forward-looking information.  The Trust 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.

For further information, please contact: 

Value Capital Trust
Jordan Calonego  - Trustee, Chief Finance Officer and Secretary of the Trust
Phone: (807) 622-9909