By Sheri Kasprzak
New York, March 31 - Redstone Capital Corp. said it has negotiated a C$3.2 million private placement.
The offering includes up to 4 million subscription receipts at C$0.80 each, a 6% premium to the company's C$0.75 closing stock price on Jan. 18, its last trade.
Each receipt is exchangeable for units of one share and one half-share warrant once the company completes its acquisition of Fireswirl Systems Inc. Fireswirl is a software developer focused on the poker industry.
Under the terms of the acquisition, Fireswirl shareholders will receive 12.5 million shares of Redstone and C$300,000 in cash.
The whole warrants associated with the units are exercisable at C$1.10 each for two years.
A syndicate of agents led by Versant Partners Inc. will place the deal.
Proceeds will be used to fund the acquisition.
Based in Vancouver, B.C., Redstone is a capital pool company.
| Issuer: | Redstone Capital Corp.
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| Issue: | Subscription receipts exchangeable for units of one share and one half-share warrant
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| Amount: | C$3.2 million
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| Receipts: | 4 million
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| Price: | C$0.80
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$1.10
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| Placement agents: | Versant Partners Inc. (lead)
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| Pricing date: | March 31
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| Stock symbol: | TSX Venture: REC
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| Stock price: | C$0.75 at close March 31
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