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TSX Venture Exchange Symbol "LOY"
TORONTO , June 4, 2012 /CNW/ - Loyalist Group Limited (the "Company") (LOY.V) is pleased to announce that it has closed the non-brokered private placement of common shares that was announced on May 24, 2012 (the "Offering"). Under the Offering, which was over-subscribed, the Company issued 20,000,000 common shares at a price of .10 per share for aggregate gross proceeds of $2,000,000 .
The Company is also pleased to announce that both Seymour Schulich and the Hon. James S. Peterson P.C. have invested substantial amounts in the Offering, which the Company believes represents significant investor validation of the Company's business model, leadership and recent success.
The Company anticipates that the proceeds of the Offering will be used to fund acquisitions and for general working capital purposes.
Pursuant to applicable Canadian securities laws, the common shares issued under the Offering will be subject to a four-month hold period from the time of closing of the Offering.
Andrew Ryu and Martin Bernholtz, each of whom is a director of the Company, directly or indirectly subscribed for 1,000,000 and 1,900,000 common shares under the Offering, respectively. The participation of these individuals in the Offering constitutes a related party transaction under Canadian Multilateral Instrument 61-101 ("MI 61-101"), but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101.
PS. Insiders investing big, Peterson and also Seymour Schulich is also in. Mmmmmmmm. Financials getting better and better too.