Mar. 29, 2011 (Canada NewsWire Group) --
Shares outstanding: 77,837,039
TORONTO, March 29 /CNW/ - Augen Capital Corp. ("Augen" or "the Company") (TSXV: AUG) is pleased to announce it has closed its previously announced non-brokered private placement financing raising aggregate gross proceeds of $1,000,000. On closing, Augen issued 12,500,000 units ("Units") at $0.08 per Unit. Each Unit consists of one common share ("Share") of the Company and one common share purchase warrant ("Warrant"). Each Warrant entitles the holder to acquire an additional Share for a period of two years from the closing date, exercisable at a price of $0.15 per Share in year one, and at a price of $0.25 per Share in year two, subject to the right of the Company to accelerate the expiry date in certain circumstances based on the trading price of the Shares.
The Company paid cash finder's fees totaling $80,000 and issued 1,000,000 compensation warrants to registrants in connection with the closing of the financing. Each compensation warrant entitles the holder to acquire one Share of the Company at a price of $0.08 per Share for one year from the closing date. The net proceeds of the financing will be used to fund general working capital of the Company.
Certain directors and officers of the Company purchased 2,937,500 Units under the financing.
All securities issued in connection with the financing will be subject to restrictions on resale for a period of four months from closing.
Augen also announces that following receipt of TSX Venture Exchange approval for the shares for debt transaction previously announced on January 31, 2011, it has issued 150,000 Shares at a deemed price of $0.08 per Share to a Director of the Company in settlement of outstanding debt owing to the Director. These Shares are subject to a four-month hold period under the policies of the TSX Venture Exchange.
About Augen Capital
Augen Capital Corp. ("Augen") (TSXV: AUG) is a Toronto-based public
merchant bank specializing in the financing of and investment in
emerging resource companies. Augen manages a merchant banking hard
dollar portfolio of emerging resource stocks.
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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Manish Z. Kshatriya, Chief Financial Officer
Tel: 416-479-3302
Toll-free: 888-442-8436