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.