10:07:02 EDT Sun 03 Jul 2022
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Fountainhall Capital closes $322,500 IPO

2021-12-14 16:02 ET - News Release

Mr. Murray Sinclair reports


Fountainhall Capital Corp. has successfully completed its initial public offering of 2.15 million common shares of the corporation at a price of 15 cents per common share for gross proceeds of $322,500. After completion of the offering, the corporation now has 3.53 million common shares issued and outstanding.

Haywood Securities Inc. acted as the agent for the offering and, in connection therewith, the corporation granted the agent non-transferable warrants that entitle the agent to purchase up to 100,000 common shares at an exercise price of 15 cents per common share. The agent warrants will expire 24 months from the date the common shares are listed on the TSX Venture Exchange, which was Dec. 14, 2021. In connection with the offering, the agent also received a cash commission equal to 7.5 per cent of the gross proceeds of the offering and a corporate finance fee and was reimbursed for its legal fees and reasonable expenses.

Concurrent with the closing of the offering, the corporation also granted options to acquire an aggregate of 300,000 common shares at an exercise price of 15 cents per common share to the directors and officers of the corporation, which options expire five years from the date of grant.

The corporation is a capital pool company and intends to use the net proceeds of the offering to identify and evaluate assets or businesses for acquisition with a view to completing a qualifying transaction under the policies of the exchange. On Dec. 10, 2021, the exchange issued a bulletin approving the listing of the common shares as of market open on Dec. 14, 2021, and immediately halting trading pending completion of closing of the offering. The common shares will resume trading under the trading symbol FUN.P on Dec. 16, 2021.

Investors are cautioned that trading in the securities of a capital pool company should be considered highly speculative.

We seek Safe Harbor.

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