Drako Capital Corp.
TSX VENTURE : DKC.P

August 18, 2010 17:36 ET

Drako Capital Corp. -Private Placement

CALGARY, ALBERTA--(Marketwire - Aug. 18, 2010) - Drako Capital Corp. (TSX VENTURE:DKC.P) ("Drako" or the "Corporation") is pleased to announce that it intends to complete a non-brokered private placement of up to 4,000,000 common shares in the capital of the Corporation at a price of $0.25 per share for gross proceeds of up to $1,000,000 (the "Private Placement"). Closing is expected to take place on or about September 30, 2010.

The completion of the Private Placement is subject to customary conditions including receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the "Exchange").

The Corporation is a "capital pool company" and intends to use the net proceeds of the Private Placement to identify and evaluate assets or businesses for acquisition with a view to completing a "Qualifying Transaction" under the policies of the Exchange.

Forward-Looking Information Cautionary Statement

Certain information regarding the Corporation in this press release including the anticipated completion of the Private Placement and the use of the net proceeds thereof, may constitute forward-looking statements under applicable securities laws. Although Drako believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Drako can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent ricks and uncertainties.

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Corporation's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, the Corporation's stated expectation to complete the Private Placement is forward-looking information. Actual results and developments may differ materially from those contemplated by this forward-looking information. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

The closing of the Private Placement could be delayed if Drako is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Private Placement will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed in a timely fashion or at all.

The forward looking statements contained in this press release are made as of the date hereof and Drako undertakes no obligation to update publicly or revise any forward looking statements or information, whether s a result of new information, future events or otherwise, unless so required by applicable securities laws.

The common shares offered have no been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

NEITHER THE 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 THE RELEASE.

Contact Information

  • Drako Capital Corp.
    Robert J. Dales
    President and Chief Executive Officer
    (403) 690-3884