Shares outstanding: 28,857,282
TORONTO, June 1 /CNW/ - Augen Capital Corp. (TSX-V: AUG) (the "Company")
is pleased to announce a non-brokered private placement to raise $3 million,
consisting of up to a total of ten million shares in the capital stock of the
Company at a price of $0.30 per unit. Each unit consists of one common share
and one non-transferable common share purchase warrant (the "warrant"). Each
warrant entitles the holder to purchase one additional common share (the
"warrant share") in the Company at a price of $0.35 per warrant share for a
period of twelve months following the closing date. In the event the common
shares of the Company trade at or above $0.50 for a period of 22 consecutive
trading days, the Company has the right to accelerate the expiry date of the
term of the warrants. The warrants shall expire thirty (30) days following the
date notice of acceleration by way of press release is given by the Company.
The transaction is subject to regulatory approval. All of the securities
issued under this private placement will be subject to a four-month hold
period. A finder's fee may be paid with respect to all or a portion of the
units by way of cash or broker warrants.
The proceeds of the private placement will be used for the expansion of
merchant banking activities and/or general working capital purposes. The
securities to be issued under this agreement do not result in a change in
control or a control voting block.
About Augen Capital
Based in Toronto, Augen is a merchant bank specializing in the financing
of primarily early stage resource companies and is an industry leader in
tax-advantaged flow-through investments in Canada's resource sector. Our
Managed Products division earns fees related to the limited partnerships and
mutual funds including setup, due diligence, and annual and performance fees.
Our Merchant Banking division provides financing and strategic management
support to resource investee companies and strives to maximize net gains
realized on its core investment portfolio of emerging resource stocks. Augen
has over $30 million in assets under management, including its merchant
banking investment portfolio, four resource flow-through limited partnerships,
and its mutual funds.
For more information on Augen Capital, visit our website at
www.augencc.com
The company's public documents may be accessed at www.sedar.com
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The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
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This news release contains certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact,
included herein are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the Company's documents filed from time to time with the British
Columbia Securities Commission and the United States Securities & Exchange
Commission.
%SEDAR: 00008335E
