October 11, 2007 14:37 ET

Capital Wapiti Inc. Announces the Terms of the Previously Announced Private Placement

MONTREAL, QUEBEC--(Marketwire - Oct. 11, 2007) - Capital Wapiti Inc. (TSX VENTURE:WTI.P) (the "Corporation"), a capital pool company listed on the TSX Venture Exchange (the "Exchange"), announced today that is has finalized the terms of its previously announced best efforts private placement offering (the "Offering"). A minimum of 14 million units (the "Minimum Offering") and maximum of 20 million units (the "Maximum Offering") (the "Units") will be offered by National Bank Financial Inc. as sole agent. The Units will be offered at a price of $0.50 per Unit for gross proceeds to the Corporation of $7 million in the case of the Minimum Offering and $10 million in the case of the Maximum Offering. The Offering is expected to close on or about October 24, 2007.

Each Unit will be comprised of one common share (the "Unit Shares") in the capital of the Corporation and one common share purchase warrant (the "Warrants"). Each Warrant shall entitle the holder thereof to subscribe for one additional common share of the Corporation at an exercise price of $0.55 for a period of 12 months following the closing date of the Offering. Unit Shares and Warrants making up the Units to be issued pursuant to the Offering will become freely tradable four months and a day after the closing of the Offering provided applicable conditions of Canadian securities laws are met.

The Corporation intends to use the net proceeds of the Offering to fund the purchase of an industrial property located at 1201 California Avenue in Brockville, Ontario, to identify and evaluate additional properties, to satisfy (in whole or in part) the purchase price for subsequent acquisitions, for working capital requirements and for general corporate purposes.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Capital Wapiti Inc.
    Mr. Serge Beaudet
    Chief Financial Officer and Secretary