VANCOUVER, British Columbia, March 22, 2017 /PRNewswire/ --
Fineqia International Inc. (the "Company" or "Fineqia") (CSE: FNQ) (OTCPink: FNQQF) is pleased to announce that it has closed a non-brokered private placement (the "Private Placement") of 58,746,401 units ("Units") issued at a price of CAD$0.015 per Unit, raising gross proceeds of CAD$881,194.18.
The close follows the oversubscribed Private Placement, with investment target increased three times from CAD$2 million to CAD$5 million due to continued investor interest, raising gross proceeds of CAD$5,171,199.50 on November 11, 2016. Each Unit consists of one common share and one transferable common share purchase warrant ("Warrants") exercisable at CAD$0.05 per share, provided that in the event that the closing price of the Company's common shares on the Canadian Securities Exchange (or such other exchange on which the Company's common shares may become traded) is CAD$0.20 or greater per common share during any twenty (20) consecutive trading day period at any time subsequent to four months and one day after the closing date, the Warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the holders of the Warrants.
Insiders of the Company subscribed for 16,400,000 Units, with Bundeep Singh Rangar, President, CEO and a director of the Company, subscribing for 10,000,000 Units through his company, Rangar Capital Limited; Stephen (Steve) John McCann, CFO and a director of the Company, subscribing for 5,200,000 Units in his own name and Martin Bernholtz, a director of the Company, subscribing for 1,000,000 Units through his company, Accretive Capital Corp. As a result, the Private Placement is a related party transaction (as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101")). The Company relied upon the "Issuer Not Listed on Specified Markets" and "Fair Market Value Not More Than CAD$2,500,000" exemptions from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-101.
"We are pleased with this raise, which was a result of continued investor interest following the private placement concluded last year," said Steve McCann, the Company's CFO. "It strengthens our ability to execute on our new business."
Fineqia intends to provide a U.K. regulated platform and associated services to place and administer debt and equity securities issuances.
The Company issued finder's Units equal to 7% of the aggregate number of Units sold in the Private Placement through the efforts of each finder at a price of $0.015 per finder's Unit. The finder's Warrants are exercisable under the same terms as the Warrants.
All securities issued pursuant to the Private Placement are subject to a four-month hold period. The proceeds of the Private Placement will be used for general working capital, debt settlements and making strategic investments.
Concurrently with the closing of the Private Placement, the Company completed a debt settlement in which a creditor agreed to accept common shares of the Company for past consulting services provided to the Company totaling CAD$250,000 by the issuance of a total of 16,666,666 common shares of the Company at a deemed price of CAD$0.015 per share.
Additionally, on February 7, 2017, the Company completed a debt settlement in which a creditor agreed to accept common shares of the Company for past consulting services provided to the Company totaling CAD$200,000 by the issuance of a total of 20,000,000 common shares of the Company at a deemed price of CAD$0.01 per share.
Following closing of the Private Placement and debt settlements, the Company now has 760,013,064 common shares issued and outstanding. All securities issued pursuant to the debt settlements are subject to a four-month hold period.
The Company also announces that it has granted incentive stock options to purchase up to 10% of its issued and outstanding common shares at an exercise price of CAD$0.05 per share for a period of five years to its directors, officers and consultants in accordance with the provisions of its stock option plan.
About Fineqia International Inc.
Fineqia's business model is to provide an online platform and associated services for the placement of debt and equity securities, initially in the UK. The platform will transparently highlight the risks and objectively outline opportunities involved. For more information, visit http://www.fineqia.com.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATORY SERVICE PROVIDER HAS REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company to complete the Change of Business, failure to obtain sufficient financing, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws. The Company disclaims any intent or obligation to update any forward-looking statement.
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Fineqia International Inc.