VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 10, 2016) –
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
Cougar Minerals Corp. (TSX VENTURE:COU) (“Cougar” or the “Company“) is pleased to announce that the Company has increased its financing in relation to the Company’s reverse takeover transaction (the “Transaction“) with TrackX Inc., a Delaware corporation (“TrackX“), previously announced in a news release dated February 16, 2016. The Company has entered into an engagement letter dated March 9, 2016 with Haywood Securities Inc. (“Haywood” or the “Agent“) in respect of a brokered private placement of up to 14,000,000 shares at a price of C$0.25 per share, for aggregate gross proceeds of up to C$3,500,000 (the “Offering”). This is an increase of C$1,000,000 from the non-brokered financing of C$2,500,000 previously disclosed in the news release dated February 16, 2016. The Transaction must be completed before or concurrently with the closing of the Offering.
As Agent, Haywood will receive a commission on the proceeds of the Offering. In addition, the Company has agreed to grant to the Agent an over-allotment option to sell to purchasers up to an additional C$525,000 in shares sold under the offering at a price of C$0.25 per share.
The net proceeds of the Offering will be used to aid in TrackX’s ongoing efforts providing enterprise scalable, RFID-enabled Asset Tracking, Inventory Management and Supply Chain Solutions to customers across a broad range of industry verticals seeking improved visibility, utilization and analytics pertaining to their high-value assets.
The Offering is expected to close on or about April 21, 2016 or such other date as the Company and the Agent may agree, and is subject to certain conditions, including completion of formal documentation and receipt of regulatory approval, including the approval of the TSX Venture Exchange (the “TSXV“) and the concurrent closing of the Transaction. Pursuant to Canadian securities laws, any securities issued in the Offering will be subject to a hold period of four months from the date of issuance.
Trading of the Company’s shares will remain halted until completion of the Transaction or until satisfactory documentation is filed with the Exchange.
A copy of the Share Exchange Agreement will be filed and available from the Company’s profile on SEDAR, available at www.sedar.com.
ON BEHALF OF THE BOARD OF COUGAR MINERALS CORP.
Darryl Cardey, President & CEO
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Completion of the Transaction is subject to a number of conditions, including satisfactory completion of confirmatory due diligence, regulatory approval including Exchange acceptance and if required, shareholder approval. There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the disclosure document to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative. The TSX Venture Exchange has in no way verified the merits of the proposed Acquisition and has neither approved nor disapproved the contents of this press release. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.