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by Stockwatch Business Reporter
The TSX Venture Exchange added 1.50 points to close at 533.31 Monday. Craig Rollins's first capital pool shell, Drummond Ventures Corp. (DVX: halted), has released the financing details for its qualifying transaction target, Sun Machine Entertainment Inc. The shell and its target have also identified three of the five director nominees for their resulting issuer. Sun Machine Entertainment, also called Sun Machine Games, is a video game developer in Vancouver. Under the QT, the shell, which has 5,125,000 shares issued, will issue 28,571,428 shares to its target's shareholders. The shell will also issue 1.05 million shares to one of its target's creditors.
Sun Machine was formed in October, 2018, and is working on its first game. The game will not yet be for PlayStation, Xbox or Nintendo consoles, but for cellphones and tablets. The company plans to release a beta version of the game in the second quarter of 2020 and then the commercial version in the fourth quarter. To finance its product development, product launch, QT costs and other working capital expenses, Sun Machine has arranged two private placements. First, it is selling $500,000 worth of debentures, which will automatically convert into 1,666,666 shares of the resulting issuer on closing of the QT. The conversion price will be 30 cents. Second, Sun Machine is selling $3-million worth of shares of the resulting issuer at 35 cents. In the meantime, to help Sun Machine with its expenses, the shell has lent it $225,000.
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