redCity plans private placement of stock for C$8 million

By Sheri Kasprzak

New York, July 13 - redCity Search Co. Inc. plans to undertake a private placement for up to C$8 million.

The pricing terms of the deal have not yet been set, but the price will not exceed C$0.0825.

GMP Securities LP is the lead agent for the offering and will have a greenshoe for up to 15% of the offering size.

J.L. Albright IV Venture Fund LP and J.L. Albright IV Parallel Venture Fund LP will participate in the offering for up to C$3 million.

Proceeds will be used to pay for the cash portion of redCity's acquisition of Zip411 Enterprises Inc. and the cash portion of the company's acquisition of Offsite Corp. The rest will be used to repay debt and provide working capital.

Offsite is a Toronto-based software development company, and Zip411 operates a search engine.

Toronto-based redCity operates search engines that allow users to find local businesses.

On July 12, redCity's stock closed unchanged at C$0.065 (TSX Venture: RDC).

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