Business
Vitality to raise $1 million; sell land; settle debt
Vitality to raise $1 million; sell land; settle debt.
About this update from Vitality Products Inc.
[{"type":"text","content":"\n\n\n\nTrading Symbol: VPI\n\n\nVANCOUVER, June 7 /CNW/ - Vitality Products Inc. (the "Company") is\narranging a non-brokered private placement of up to 5 million units of the\nCompany at a subscription price of $0.20 per unit for gross proceeds of up to\n$1 million, subject to regulatory approval. Each unit consists of one common\nshare and one non-transferable share purchase warrant of the Company, and each\nsuch warrant will entitle the holder thereof to acquire one additional common\nshare of the Company for a period of two years at a purchase price per common\nshare of $0.25 for the first year and at a purchase price of $0.30 for the\nsecond year. Finders' fees will be paid on portions of the private placement.\nThe private placement shares and any shares acquired upon exercise of the\nwarrants will be subject to a four-month hold period. The net proceeds of the\nprivate placement to the Company will be used, in part, to further develop and\nenhance the Company's existing and related businesses, for general corporate\npurposes and to enhance the Company's resulting working capital position as a\nconsequence thereof.\n\n\nThe Company has also entered into an agreement to sell its 5.17 acres of\nland situated in Whatcom County, Washington to Consolidated Firstfund Capital\nCorp. ("Firstfund") for a total consideration of $400,000, subject to\nregulatory approval. Firstfund is a related company managed by common\ndirectors and officers and controlled by a common director, and the proposed\nsale has been approved by the Company's independent Board members and is\nconsidered by the Company to be at fair market value for said land. The\nproceeds from the sale will be used to reduce the amount of share\nsubscriptions outstanding received from Firstfund.\n\n\nThe Company has also entered into shares for debt settlements with\ncertain insiders of the Company to settle aggregate indebtedness in the amount\nof $200,000 by way of the issuance of 1 million common shares of the Company\nat a deemed settlement price of $0.20 per share, subject to regulatory\napproval.\n\n\nThe proposed private placement, land sale and debt settlement\ntransactions are being undertaken by the Company, in part, to meet the Tier 2\nTier Maintenance Requirements of the TSX Venture Exchange and to further the\nCompany's various business in...