pcNewsWire – Gunpowder Capital Corp. (CSE: GPC; FSE: YS6N) has completed first tranche of non-brokered private placement, issuing 11,260 Class A Preferred shares at $10.00 per share for $112,600.00.
Press Release
Gunpowder Capital Corp., Closes First Tranche of Its Non-Brokered Private Placement Raise, Purchases Investment Portfolio
Toronto, Ontario–(Newsfile Corp. – May 8, 2017) – Gunpowder Capital Corp., (CSE: GPC) (CSE: GPC.PR.A) (FSE: YS6N) (“Gunpowder” or the “Corporation”) announced today that it has closed the first tranche of its non-brokered private placement raise. In total One Hundred and Twelve Thousand, Six Hundred Dollars (“$112,600.00”) CDN was raised by issuing Eleven Thousand, Two Hundred and Sixty (“11,260”) of the Corporation’s “Class — A” Preferred Shares at a price of $10.00 CDN per share. The “Class — A” Preferred Shares will pay up to an 8% annual dividend to the holders of the preferred shares. The shareholders of the “Class — A” Preferred Shares will also see a 25% of after tax realized gains on any capital dispositions. No special voting rights will be granted to the holders of the “Class — A” Preferred Shares. No commission or finder’s fee is payable with respect to the closing of the placement.
The Corporation also announced today that it has purchased additional investment portfolio assets from YCF Capital Inc. (“YCF”), a Toronto based private investment firm. Please see our press release dated November 16th, 2016. The YCF loan portfolio consists of mortgages and commercial loans all of which are in “good standing”. The additional loan portfolio assets that Gunpowder Capital Corp., is purchasing generates approximately 16% interest per annum, and has a face value of Ninety-Six Thousand Dollars (“$96,000.00”) CDN. The Corporation has agreed to issue Nine Thousand, Six Hundred (“9,600”) of its “Class — A” Preferred Shares at Ten Dollars (“$10.00”) CDN per “Class — A” Preferred share, as consideration for the purchase.
With the completion of this purchase, in total and combined with the previous two purchases, the loan portfolio purchase now amounts to One Million and Twenty-Six Thousand Dollars (“$1,026,000.00”) CDN. It is expected that the portfolio will generate for Gunpowder Capital Corp., approx. One Hundred and Fifty Thousand Dollars (“$150,000.00”) CDN, in revenue in fiscal 2017.
The Corporation has also entered into debt settlement agreements which provides that the aggregate amount of the debt owing to key management of the Corporation totaling Fifty Thousand Dollars (“$50,000.00”) CDN will be settled by the issuance of Five Hundred Thousand (“500,000”) Common Shares of the Corporation at a deemed price of Ten Cents (“$0.10”) per Common Share (the “Shares for Debt Transaction”). The amount of debt represents annual bonuses earned by key management. The Corporation would like to thank the management involved in the settlement for the confidence they have shown in the Corporation by settling their debt at a premium to the Corporation’s Common Share stock price, based on market close on May 5th, 2017. The Common Shares to be issued pursuant to the Shares for Debt Transaction will be subject to a four-month hold period.
For further information please contact:
Mr. Frank Kordy
Interim CEO & Director
Gunpowder Capital Corp.
T: (647) 466-4037
E: frank.kordy@gunpowdercapitalcorp.com
Mr. Paul Haber
CFO
Gunpowder Capital Corp.
T: (416) 363-3833
E: paul.haber@gunpowdercapitalcorp.com
