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Fortune Bay Corp. closes $2,300,000 non-brokered private placement and issues secured debenture to Kneat Solutions Limited
Fortune Bay Corp. closes $2,300,000 non-brokered private placement and issues secured debe...
About this update from Kneat.com, Inc.
[{"type":"text","content":"\n\n\n\nFortune Bay Corp. closes $2,300,000 non-brokered private placement and issues secured debenture to Kneat Solutions Limited\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nFortune Bay Corp. closes $2,300,000 non-brokered private placement and issues secured debenture to Kneat Solutions Limited\nCanada NewsWire\nHALIFAX, March 24, 2016\n\n\n\nHALIFAX, March 24, 2016 /CNW/ - Fortune Bay Corp. (\"Fortune Bay\") (TSX: FOR) Fortune Bay Corp. is pleased to announce that it has closed the previously announced non-brokered private placement to raise $2,300,000 through the issuance of 7,665,550 common shares.  The common shares issued in connection with the private placement are subject to a four-month hold period that will expire on July 24, 2016.  \n\nThe proceeds from the private placement will be used to fund the previously announced transaction with Kneat Solutions Limited (\"Kneat\") and provide adequate working capital to list a newly formed exploration company (\"Spinco\") that is expected to be listed on the TSX Venture Exchange. \n\nThe Chief Executive Officer of the Company subscribed for an aggregate of 1,000,000 common shares.\n\nThe Board of Fortune Bay has also approved the issuance of a Series A Secured Debenture to Kneat of €1,000,000 (\"the Debenture\") with an interest rate of 7.25% per annum and a maturity date of July 1, 2016.  In the event the Arrangement is completed prior to the July 1, 2016, the Debenture will become an intercompany loan between Fortune Bay and Kneat.  In addition, the required Fortune Bay net cash balance of $8.2 million due on closing will be reduced by the amount of the Debenture plus all accrued interest.  \n\nAbout Fortune Bay Corp.\n\nFortune Bay is engaged in the exploration and potential development of two primary mining projects: the Goldfields project and the Ixhuatán project. The Goldfields project is a property located in northern Saskatchewan and consists of two gold deposits: the Box deposit and the Athona deposit. The Ixhuatán project is located in the northern Chiapas State ...