GA Capital Completes Qualifying Transaction / Distribution of Xtierra Units
17 April 2010 - 1:29AM
Marketwired Canada
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
GA Capital Corp. ("GA Capital") (TSX VENTURE:GAC.P), a capital pool company,
announced that it has completed its previously announced qualifying transaction
(the "Qualifying Transaction") with Xtierra Inc. ("Xtierra") (TSX VENTURE:XAG),
subject to receipt of final approval from the TSX Venture Exchange Inc. (the
"Exchange").
Pursuant to the Qualifying Transaction, the Corporation subscribed for and
purchased 3.5 million units (the "Xtierra Units") of Xtierra at a price of $0.20
per Xtierra Unit for an aggregate purchase price of $700,000. Each Xtierra Unit
consisted of one common share and one-half share purchase warrant (each, a
"Warrant"). Each whole Warrant entitles the holder to purchase one Xtierra
common share at a price of $0.30 until the close of business on April 14, 2011.
The Qualifying Transaction remains subject to the Corporation filing final
documentation with the Exchange and final Exchange acceptance.
The approval of a majority of the minority of the Corporation's shareholders for
the Qualifying Transaction was obtained at the annual and special meeting of
shareholders held on April 14, 2010. In connection with the approval of the
Qualifying Transaction, the shareholders of the Corporation also approved the
reduction of stated capital and voluntary dissolution of the Corporation.
The Corporation has distributed all of the common shares and Warrants comprising
the Xtierra Units acquired in the Qualifying Transaction to the shareholders of
the Corporation of record as of the close of business on April 15, 2010 as a
return of capital. Each shareholder will receive 0.4117647 Xtierra Units for
each common share of the Corporation held by them with any fractional
entitlements rounded down to the next lowest whole number of Xtierra Units.
The common shares of the Corporation will remain halted pending final Exchange
approval of the Qualifying Transaction and the issuance by the Exchange of a
Final Exchange Bulletin. Upon final approval, the Corporation will be delisted
and then subsequently dissolved, with all outstanding equity rights in the
Corporation cancelled. Any securities of Xtierra distributed to shareholders of
the Corporation whose securities of the Corporation had been held in escrow will
also be held in escrow and released as to 25% on the issuance of the Final
Exchange Bulletin and a further 25% on each of the 6, 12 and 18 month
anniversaries of such date.
Additional details regarding the Qualifying Transaction, return of capital to
the shareholders and the dissolution are available in the management information
circular of the Corporation dated March 15, 2010, which has been filed with the
Exchange and is available on SEDAR at www.sedar.com.
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