Parkit Announces Rights Offering
VANCOUVER, Nov. 7, 2018 /CNW/ - Parkit Enterprise Inc. (TSXV: PKT; OTCQX: PKTEF) (the “Company” or “Parkit”) is pleased to announce that it will be conducting an offering of rights (each, a “Right”) for gross proceeds of up to$5,000,000 (the “Rights Offering”) to holders of its common shares (each, a “Common Share”) resident in Canada at the close of business on November 14, 2018 (the “Record Date”). Each shareholder as of the Record Date will be issued 0.5336 of one Right for each Common Share held. Every one whole Right will entitle the holder to subscribe for one Common Share of the Company at a subscription price of $0.29 per Common Share.
The Rights will be listed for trading on the TSX Venture Exchange (the “Exchange”) under the symbol “PKT.RT” commencing on November 13, 2018 and will be de-listed from the Exchange at 9:00 a.m.(Vancouver time) on December 14, 2018(the “Expiry Date”), after which time unexercised Rights will be void and of no value. The Rights Offering includes an additional subscription privilege under which eligible holders of Rights, who fully exercise their Rights, will be entitled to subscribe, on a pro rata basis with other shareholders who participate in the oversubscription, for Common Shares that have not been purchased under the Rights Offering. Parkit intends to use the net proceeds of the Rights Offering for identification and evaluation of new projects.
The Rights issued under the Rights Offering will be evidenced by transferable Rights certificates (each, a “Rights Certificate”) which will be mailed, together with a rights offering notice, to all registered holders of Common Shares in a province or territory of Canada as of the close of business on the Record Date. Eligible registered shareholders who wish to exercise their Rights must forward a completed Rights Certificate, together with the applicable funds, to Computershare Investor Services Inc., the Rights agent of the Company, on or before the Expiry Date. Shareholders who own their Common Shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.
Standby Commitment
In connection with the Rights Offering, Parkit has standby commitments in place from KDI Corporation Ltd., B&M Miller Equity Holdings Inc. Leonite Capital LLC (an entity controlled by Avi Geller), andBrad Dunkley (each a “Standby Guarantor”, and together the “Standby Guarantors”). The Standby Guarantors will ensure that at least 2,413,790 Common Shares will be subscribed for and that at least $700,000 will be raised under the Rights Offering. It is anticipated that Leonite Capital LLC, as a resident of the United States, will satisfy its standby commitment by purchasing approximately $250,000 common shares by way of a concurrent private placement of common shares at $0.29 per share.
The Standby Guarantors are considered to be “related parties” (within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”)), making the Rights Offering a “related party transaction” (within the meaning of MI 61-101) (the “Related Party Subscriptions”). The Company will be exempt from obtaining a formal valuation for, and minority approval of, the Related Party Subscriptions pursuant to Section 5.5(b) and 5.7(b) of MI 61-101, respectively.
Further details of the Rights Offering and the Standby Guarantees will be set out in Parkit’s rights offering circular and rights offering notice, which will be filed under the Company’s profile at www.sedar.com.The Rights Offering is subject to regulatory approval, including the approval of the TSXV
