Trading Symbol: VPI
VANCOUVER, June 7 /CNW/ - Vitality Products Inc. (the "Company") is arranging a non-brokered private placement of up to 5 million units of the Company at a subscription price of $0.20 per unit for gross proceeds of up to $1 million, subject to regulatory approval. Each unit consists of one common share and one non-transferable share purchase warrant of the Company, and each such warrant will entitle the holder thereof to acquire one additional common share of the Company for a period of two years at a purchase price per common share of $0.25 for the first year and at a purchase price of $0.30 for the second year. Finders' fees will be paid on portions of the private placement. The private placement shares and any shares acquired upon exercise of the warrants will be subject to a four-month hold period. The net proceeds of the private placement to the Company will be used, in part, to further develop and enhance the Company's existing and related businesses, for general corporate purposes and to enhance the Company's resulting working capital position as a consequence thereof.
The Company has also entered into an agreement to sell its 5.17 acres of land situated in Whatcom County, Washington to Consolidated Firstfund Capital Corp. ("Firstfund") for a total consideration of $400,000, subject to regulatory approval. Firstfund is a related company managed by common directors and officers and controlled by a common director, and the proposed sale has been approved by the Company's independent Board members and is considered by the Company to be at fair market value for said land. The proceeds from the sale will be used to reduce the amount of share subscriptions outstanding received from Firstfund.
The Company has also entered into shares for debt settlements with certain insiders of the Company to settle aggregate indebtedness in the amount of $200,000 by way of the issuance of 1 million common shares of the Company at a deemed settlement price of $0.20 per share, subject to regulatory approval.
The proposed private placement, land sale and debt settlement transactions are being undertaken by the Company, in part, to meet the Tier 2 Tier Maintenance Requirements of the TSX Venture Exchange and to further the Company's various business interests as a consequence thereof.
On behalf of the Board of
VITALITY PRODUCTS INC.
"William N. Grant" (signed)
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William N. Grant, President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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